In this day and age of consumers finding a wide variety of products in the market, it is the offers and deals that make all the difference in what people are buying. This is also probably why the market of MLM and direct selling is on the rise right now as the top 10 chain marketing companies in India continue to cross these barriers to reach their audience. But then, even MLM strategies are not uniform.
There are a number of types of MLM strategies in the world, used by different companies to achieve different levels of results in their efforts. However, one thing that is common in all of them is the need to generate revenue. So if you are thinking of jumping into this booming business, here is what you must know about the different kinds of MLM plans that are out there.
Types of MLM Plans
- Binary Plan: One of the most common and popular MLM plans, the Binary model divides the downlines of recruiters into 2 parts: the power line and the profit line. Needless to say, while one line consists of power players, the other line consists of numbers to increase profit. It grows the team, increases profit, and helps in creating an environment of teamwork and collaboration.
- Matrix Plan: The matrix plan allows for the joiner to earn more than the recruiter. The downlines are divided into 3 positions, which re to be filled with 3 new joinees. These 3 joinees will then add three people each, creating a matrix. The plan looks like a pyramid as the width of the downline keeps growing.
- Hybrid Plan: A hybrid plan is a combination of 2 or more traditional plans and is often a reaction to the increasing competition in the market. Many players from India’s top mlm company list follow this model, where the downlines follow a hybrid model and can be divided into any number of possibilities. This model increases sales.
- Board Plan: The board plan is used to add customers to a selling effort in the form of groups. Also called a board, only a fixed number of customers can be added to a group, where an entire team world towards making a sale. Needless to say that the profit is divided into the team, but since the profit is coming from a group, it is obviously high.
- Generation Plan: Generation plan is a classic model of MLM and often takes into the direction of the growth. The downlines can be expanded in any numbers, and can even have inactive or dormant participants. However, this model focuses more on selling than recruiting and directly connects a company to its end users.
MLM is not an easy path to take in your life but that does not mean that one has to jump into this without knowing much about the industry. These plans are the most basic thing about the world of MLM and thus, become the most important to know.
