Types of MLM Plans – Binary, Board, Unilevel, Hybrid & More
Multi-Level Marketing (MLM) is a business model that is more effective based on network sales and compensation. There are lots of types of MLM plans. All of the types of plans are customized for various business objectives, and team or agent' structures. The most common MLM plans include the Australian Plan, Binary Plan, Board Plan, Unilevel Plan, Single Leg Plan, and Hybrid MLM Plan. Modern MLM software supports these plans with features like automated genealogy tracking, commission processing, e-wallet integration, real-time analytics, and user management. Whether launching a new MLM venture or optimizing an existing system, selecting the right MLM plan and software is critical to success.
How MLM software supports them:
Australian MLM Plan
Also called the Australian X-Up or X-Up Plan.
➤ How It Works:
- Each distributor must pass up a specified number of sales (first, second, or fourth sale, etc) to their upline.
- Common formats: 1-up, 2-up, and 3-up plans.
- After the required pass-ups, the distributor keeps all further direct sales and commissions.
➤ Key Elements:
- Encouraged recruiting.
- Ensured the top-level downline continues to receive commissions from affiliates they refer.
➤ Software Offered:
- Automatically tracks "pass-ups."
- Commissions logical distribution.
- Downlines and genealogy reporting.
Binary MLM Plan
Binary MLM member recruits 2 frontline members (Left and Right leg).
➤ How it works:
- Each member recruits 2 frontline members (Left and Right leg).
- Earnings are determined by balancing both legs (usually matching pairs).
- Additional members are placed below the members on the team (spillover).
➤ Main features:
- 2-team structure
- Encourages teamwork and spillovers
- Capping and Bonuses at the end of the cycle
➤ Software Functions:
- Tree view of binary structure
- Leg balance & auto-matching
- commission, bonuses, and capping functionality.
Board MLM Plan
Also known as the Matrix-Cycle or Revolving Matrix.
➤ How it works:
- A board has limited positions (3x3 = 3 frontlines, so 9 total members).
- When the board is full, the top member "cycles out" and goes back into a new board.
- All other members automatically move up.
➤ The Basics:
- Has a cyclic nature with automatic upgrades.
- Earnings can be fast when the boards fill up.
➤ Software Capabilities.
- Track the members as they cycle off the board.
- Members will auto-shift.
- Re-entries will be automatic, and bonuses will be automatically paid.
Unilevel MLM Plan
Unilevel MLM of direct sponsorships, so you can have unlimited frontline referrals.
➤ How it works:
- An unlimited number of direct sponsorships, so you can have unlimited frontline referrals.
- Commission is a predetermined number of levels (for example, either 5 or 10 or whatever it may be), with everyone paid equally from each level.
➤ Key Features:
- Easy and simple, and transparent.
- Straight-line commission process.
- Popular for promoting products.
➤ Software Feature Set:
- Unlimited direct sponsor management.
- Fixed commission by level paid structure.
- Sales and performance reporting.
Single Leg MLM Plan
Also known as Monoline MLM.
➤ How It Works:
- Members are placed in a single vertical line, one member at a time.
- Earnings are based on the number of people beneath a member.
➤ Key Features:
- Everybody starts out equal by joining early.
- One leg goes down, from top to bottom.
➤ Capabilities of the Software
- An Auto-placement system.
- Tracking a global downline.
- Automated payouts and ROI.
Hybrid MLM Plan
➤ How It Works:
- A combination of two or more fun plans (ex., Binary + Unilevel, or Matrix + Board).
- A structure that is customized to the designer's or the business model's needs.
➤ Key Features:
- Flexible and customizable based on the company's goals.
- Higher customization potential.
➤ Capabilities of the software:
- A modular design that allows for hybrid logic.
- Custom commission engines.
- Multiple tree structures and payout models.
Why MLM Software is Important: MLM Software automates:
- MLM Software automates
- Member Management
- Tree/genealogy building
- Commissions, bonuses, and ROI
- E-wallets and withdrawals
- Reports & analytics
If you're looking for custom MLM software development for any of these plans, Letscms or mlmtrees.com specialize in powerful, secure, and scalable MLM software tailored to your business model.
