🧬 MLM compensation plans · Generation plan

Generation plan: get paid on every leader you grow

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%
Gen 2
5%
Gen 3
3%
Gen 4
2%
Gen 1 · 8%
Gen 2 · 5%
Gen 3 · 3%
Gen 4 · 2%
You

Gen 1 · 8% override

Level vs generation

Why generations reach deeper

Four levels of pay stop at row 4. Four generations follow your leaders down, however deep they are. Hover a column.

Level pay (4 levels)
Paid on rows 1–4 only
Generation pay (4 generations)
Paid down to the 4th leader
Generation builder

Build your own generations

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.

You
  • Gen 1
  • Gen 2
  • Gen 3
  • Gen 4
  • Not paid
  • ⭐ Leader
Rank unlocks

Higher rank, more generations

Most plans pay more generations as you rank up. Example ladder, not a real plan. Hover a rank.

  1. Member
    Retail and personal bonus
  2. Leader
    Gen 1 override
  3. Senior leader
    Gens 1–2
  4. Director
    Gens 1–3
  5. Executive
    Gens 1–4
Monthly override—

Build this generation engine
Override calculator

Generation override calculator

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.

YouBCD

Without compression, B and C are inactive and D sits on level 3.

Compression

Compression keeps pay flowing

If members in between are inactive this month, compression skips them so the next active member moves up. Press the button to see it.

Ways to earn

Income types in a generation plan

Hover a card to lift it.

Retail profit

Margin on products you sell to your own customers.

Team commission

Paid on your own group's volume, down to the first leader in each leg.

Generation override

A percentage of each leader generation's volume, for example 8%, 5%, 3%.

Leader development bonus

A one-time bonus when someone you sponsor reaches leader rank.

Leadership pool

A share of company volume split between top ranks.

Rank rewards

Cash, trips or car bonuses for reaching and holding ranks.

Pros and cons

Is a generation plan right for you?

It's built for leadership cultures. Members need clear rank rules and real customer sales.

👍 Strengths
  • Pays you for growing leaders, not just headcount
  • Income reaches very deep into large organisations
  • Leaders don't compete with their sponsor for volume
  • Works well with stair-step or unilevel front ends
  • Fits companies with many strong leaders
⚠️ Watch out for
  • Little extra pay until your team has leaders
  • Monthly rank rules can cut income suddenly
  • Harder to explain than level-based pay
  • Complex to calculate, especially with compression
  • Can push buying to hold rank, so needs guards
Build it right

Design a generation plan that stays fair

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.

  • Customer salesRanks need retail customers
  • Purchase capsLimit self-buying for rank
  • Grace periodsSoften monthly rank drops
  • RefundsReverse overrides on returns
  • DisclosuresPublish earnings by rank
  • Audit trailEvery override logged
Compare plans

Generation plan vs other MLM plans

Click a plan to see it explained.

PlanWidthPaid onComplexity
GenerationUnlimitedLeader generationsHigh
UnilevelUnlimitedLevel %Low
Stair-step breakawayUnlimitedRank differentialHigh
Binary2 legsMatched volumeMedium
MatrixFixed (e.g. 3)Fixed levelsLow
Australian binary2 (+ pass-ups)Pass-ups + pairingMedium
Delivery

Launch in about 9 weeks

Estimated timeline, tested on deep simulated teams.

  1. Week 1–3PlanRanks, generation rules, compression
  2. Week 4–7BuildGeneration engine, ranks, wallet and shop
  3. Week 8TestSimulate months of deep teams
  4. Week 9LaunchGo live with admin and leader apps
  5. OngoingSupportNew ranks, pools and scaling
FAQ

Generation plan questions

Answers for founders, planners and leaders.

What is a generation MLM plan?

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%.

What is the difference between a level and a generation?

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.

How many generations can I be paid on?

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.

What is compression in a generation plan?

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.

Is a generation plan the same as a breakaway plan?

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.

Who is a generation plan best for?

Companies with many full-time leaders and repeat-purchase products, such as wellness and personal care. It rewards people who develop other leaders.

Is a generation plan legal?

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.

How long does generation plan software take?

Usually about 8–9 weeks including simulation tests, as generations and compression need careful testing. This is an estimate.

Can I combine generation overrides with other plans?

Yes. The most common hybrid is a unilevel or stair-step plan for the first levels, with generation overrides for leaders further down.

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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.

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