GENERATION MLM PLAN
Generation Multi-Level Marketing Plans most common but bit slightly puzzling MLM program. Since it is confusing for some people, I thought about elaborating on this Generation MLM Plan and its advantages in this article. A Business that involves selling or marketing products through a network line of people and people who recruit other people to do the same are called Multi-Level Marketing (MLM), also known as Network Marketing Business.
Multi-Level Marketing Program has a lot of compensation plans for the benefits of their employees and associates. Generation Plan is one of the Compensation Plan is among the whole MLM program. Now, we can overlook in detail the working of the Generation MLM program.
EXPLAINING THE WORKING OF GENERATION MLM PLAN
The Generation Plan is also called as Gap Commission MLM Plan or Repurchase MLM Plan. It is a product selling MLM plan where every associate has to promote the downline by selling the products and earning sales commissions, bonuses, and incentives to achieve specific sales targets.
Most of the E-Commerce Business and other B2B Sector chooses Generation MLM Plan. This is a plan which gives more importance to product sales than on recruiting new members. Above all, companies prefer the generation plan because it helps them sell products efficiently without spending a lot of time and money on advertising.
A Generation MLM Plan is similar to a single level subtree plan but with different generations level. A generation contains a distributor or a sponsor and their following clients. Therefore, a generation network chain will have an infinite number of network levels based on its hard work marketing. To know more about Generation Levels in a Generation MLM Plan, keep reading the concept explained in the next paragraph.
THE CONCEPT OF GENERATION IN GENERATION MLM PLAN
To understand the concept of Generation in Generation MLM plan, first, we need to learn about Generation Levels. Generations Levels are groups of downline members on a network chain. Every generation has a set number of levels of downline members; it’s usually been four or five levels in common. After all, it depends on the company’s rules and policies.
In such a case, downline members from level 1 to level 5 is considered as First Generation. And from level 6 to level 10 will the Second Generation, and so on. Here, the commission for products sold by your First Generation will be the highest. And, it decreases from First Generation to Second Generation, from the Third Generation you will be earning even lesser commissions than the Second Generation. These commission rates and generation levels will already be fixed by the company when they propose the plan.
Now, let’s look into more about the benefits of being part of a Generation Plan is all about.
ADVANTAGE OF USING GENERATION MLM PLAN
Generation MLM Plan has a lot of advantages included. And it is also considered as the most vital MLM Plan with many opportunities, especially for people looking in a sales perspective business plan. Let’s look into some of the primary advantages of the Generation MLM Plan.
1. Easy to manage the business network with the Genealogy of Network or Generation Levels with distributor or sponsor.
2. Easy to monitor the sales of the network downlines and their performance. Also, weencourage the team to reach their goals with less efforts.
3. Be able todistribute the products and track thedistributions makes easy to manage sales.
4. The suppliers receive the products in a wholesale amount from the manufacturing company. Then the suppliers sell their products to outside customers for a retail price.
5. The difference in retail and wholesale value will be the profit. So, the profit earned by the suppliers on selling a product will be more. This is helpful for B2B or any E-Commerce Business.
DIS ADVANTAGES OF USING GENERATION MLM PLAN
1. Most suited plan for companies focused on to selling products irrespective of their downline level.
2. A more significant number of members in later generations make up for the lower commission rates. The commission rates decrease as the level of the generation keep building.
3. With various commission rates and infinite number of generations, it is hard to manage accounts and other finance on business.
4. Generation Plan is not suited for companies selling products that are low in demand and high-cost products. This plan is done mainly for high volume sales than high-value sales.
5. Pressure on trading products for achieving sales targets will be slightly uncomfortable for employees.
CONCLUSION
If you are a company focused on selling good quality products, this is the best MLM Plan for you. And if you don’t want to spend money on advertising, Generation Compensation Plan is the most suitable compensation plan for your company. Not only that with this plan, you will be able to offer products to your consumers at more attractive prices.
