🧬 MLM compensation plans · Generation plan
Instead of paying by level, a generation plan pays by leader. Each time a leader of your rank appears in your team, a new generation starts below them, and you earn an override on it. It reaches far deeper than level pay. Build generations yourself below, try the calculator, then launch it on software built to your rules.
Gen 1 · 8% override
Four levels of pay stop at row 4. Four generations follow your leaders down, however deep they are. Hover a column.
This is one leg of your team, from your first recruit down. Tap members to make them leaders. Every leader ends a generation and starts the next.
Most plans pay more generations as you rank up. Example ladder, not a real plan. Hover a rank.
Choose your rank and enter each generation's monthly volume. See what each generation pays, and what you'd unlock by ranking up. Use your own figures.
Without compression, B and C are inactive and D sits on level 3.
If members in between are inactive this month, compression skips them so the next active member moves up. Press the button to see it.
Hover a card to lift it.
Margin on products you sell to your own customers.
Paid on your own group's volume, down to the first leader in each leg.
A percentage of each leader generation's volume, for example 8%, 5%, 3%.
A one-time bonus when someone you sponsor reaches leader rank.
A share of company volume split between top ranks.
Cash, trips or car bonuses for reaching and holding ranks.
It's built for leadership cultures. Members need clear rank rules and real customer sales.
Regulators such as the US FTC warn against plans where people buy product just to qualify for rank. Tie ranks to real customer sales. Laws differ by country, so please get legal advice.
Click a plan to see it explained.
| Plan | Width | Paid on | Complexity |
|---|---|---|---|
| Generation | Unlimited | Leader generations | High |
| Unilevel | Unlimited | Level % | Low |
| Stair-step breakaway | Unlimited | Rank differential | High |
| Binary | 2 legs | Matched volume | Medium |
| Matrix | Fixed (e.g. 3) | Fixed levels | Low |
| Australian binary | 2 (+ pass-ups) | Pass-ups + pairing | Medium |
Nine modules we build for generation plans. Each links to the related service.
Generations and compression are easy to get wrong. We'll simulate months of payouts before launch.
Simulate my planSee all MLM plansEstimated timeline, tested on deep simulated teams.
Other plans and the services that power them.
Answers for founders, planners and leaders.
It's a plan that pays overrides by leader generation instead of by level. Your first generation is everyone down to, and including, the first leader of your rank in each leg. Below that leader a second generation starts, and so on. Each generation pays a set percentage, for example 8%, 5% and 3%.
A level is one row of people in your tree, however many there are. A generation can contain many levels: it runs from you down to the next qualified leader. So generation pay reaches much deeper than level pay with the same number of steps.
It depends on your rank. A typical plan pays a leader on one generation and adds more as you rank up, often up to 4 to 7 generations. On this page's example, an Executive is paid on 4.
Compression skips inactive or unqualified members when counting levels or generations, so the next qualified leader moves up. It stops you losing pay because someone in between didn't qualify this month.
They're related. Breakaway plans usually pay generation overrides on legs that break away. A pure generation plan uses generations from the start, often on top of a unilevel or stair-step front end.
Companies with many full-time leaders and repeat-purchase products, such as wellness and personal care. It rewards people who develop other leaders.
It can be when income comes from real product sales to real customers, not recruiting fees or forced purchases. Laws differ by country, so please get legal advice. Our software supports customer-sales rules, purchase caps and income disclosures.
Usually about 8–9 weeks including simulation tests, as generations and compression need careful testing. This is an estimate.
Yes. The most common hybrid is a unilevel or stair-step plan for the first levels, with generation overrides for leaders further down.
Tell us your ranks, generations and override rates. We'll scope your generation plan MLM software. We reply within 4 business hours and can demo with your own data.