Overview of the 6 Most Popular MLM Plans
Choosing the right compensation plan is the backbone of any MLM business. Here we compare the Top 6 MLM Plans: Binary, Matrix, Unilevel, Generation, Board/Cycler, and Gift/Donation.
Fenizo MLM Software supports all 6 plan types with configurable payouts, wallets, GST/VAT invoicing and more. Book a demo.
Table of Contents
1. Binary Plan
Members build two legs (left & right). Commissions are based on matching sales volume on both sides (pairs).
- Pros: Simple, team-driven, spillover helps weak leg.
- Cons: Can bottleneck on weak leg; requires balancing.
2. Matrix Plan
A forced matrix like 3×3 or 5×7 limits frontline width and pays fixed depth. Spillover ensures teamwork.
- Pros: Predictable structure, depth growth.
- Cons: Can stall if uplines inactive.
3. Unilevel Plan
Unlimited frontline recruits. Commission paid down multiple levels (e.g., 7–10 levels), often with activity qualifiers.
- Pros: Simple, unlimited width, great for strong recruiters.
- Cons: Needs qualifiers to prevent overpayment.
4. Generation / Breakaway Plan
Rewards are paid based on rank-based generations. Downline leaders “break away” to form new groups.
- Pros: Rewards leadership development.
- Cons: More complex tracking.
5. Board / Cycler Plan
Members enter a board (e.g., 2×2). When the board fills, the top cycles out and receives payout; others move up.
- Pros: Exciting, gamified, fast turnover.
- Cons: High churn; complex to explain.
6. Gift / Donation Plan
Peer-to-peer donation plans where members gift fixed amounts and later receive from their downline or cycle.
- Pros: Simple to start, low entry cost.
- Cons: High legal risk (often seen as pyramid schemes).
Need a flexible engine that lets you switch between plans or run hybrids? Fenizo MLM Software supports it.
Summary & Choosing the Right Plan
The “best” plan depends on your product, target market, and compliance needs:
- Binary: Great for volume-driven wellness/nutrition.
- Matrix: Works for subscription or team packs.
- Unilevel: Simple, great for affiliate-like models.
- Generation: Strong for leadership development.
- Board: Suits gamified fundraising projects.
- Gift: Very risky — check legality before use.
Build your MLM business on a compliant, flexible platform with wallets, GST/VAT, and fraud controls: Fenizo MLM Software.
Top 6 MLM Plan FAQs
Q1. Which MLM plan is most popular?
Binary and Unilevel are the most widely adopted worldwide.
Q2. Can I mix plans?
Yes—many companies run hybrids (e.g., Binary + Unilevel matching bonus).
Q3. Which plan is safest legally?
Plans tied to real product/service sales (Binary, Unilevel, Generation) are safest.
