Someone in the world is starting a business based on network marketing principles every 10 seconds. This shows the massive growth in the industry of multi-level marketing (MLM). You need to know which MLM companies are the best for you.
You can make a great living if you know how to close deals.
But be cautious. A lot of people don’t fully research how they can earn money. You need to understand the ways compensation works in the industry.
Types of Compensation Plans
There are several kinds of plans, but these four are the most common.
Breakaway Plan
This is also called the Stairstep Breakaway Plan.
As a distributor, you climb steps. Each step you climb, your products you purchase to sell are discounted at higher rates.
When you reach a certain level, you break away from that upline and start a new one. Then you collect royalties from sales of that line.
- Pros:
- Performance is rewarded
- Well accepted by regulatory agencies and distributors
- Easy to modify
- Cons:
- Leads to inventory loading to reach volume requirements
- Many companies have too high a monthly purchase requirement
- Most difficult plan to explain to new recruits
Unilevel Plan
This is the simplest plan to understand. You sponsor into one level and earn commissions on people your downline members sponsor into their first level.
- Pros:
- Easiest to administer and explain to new recruits
- Cons:
- Little support from an upline
- No rank advancements
Matrix Plan
As a distributor, you add people and their downline falls under you. There are several kinds of matrix systems, such as 4 x 7, 3 x 9, etc.
Each matrix varies in the width and depth you can achieve.
- Pros:
- You can build a reliable downline to generate more income
- Cons:
- Widely criticized as a pyramid scheme
Binary Plan
You build two legs, then get paid a percentage on the leg with the least volume. While you get paid for both legs, your percentage fully depends on the lowest volume leg.
- Pros:
- Likely pays weekly
- Perfect for encouraging group participation
- Cons:
- Leads to legal issues for those pushing for recruits instead of selling products
- Many people start too many businesses with the same MLM to create several legs, but they can’t support downline members
There is no perfect plan for everyone. When you research MLM companies, you need to look at the pros and cons of each.
The Top 10 MLM Companies With the Best Compensation Plans
There are so many MLM companies to choose from. And compensation plans are not everything, but they are important.
Here are the best MLM companies with awesome compensation:
ARIIX
What You Sell:
Lifestyle brands, including Nutrifii, Puritii, and Nucerity
Compensation Plan:
They provide the industry’s first multiline compensation plan, called Activ8. You aren’t limited to the width or depth of typical matrix plans.
They provide a 50% payout, which is the highest commission structure available. Another awesome benefit — they use a cost-of-living-increase algorithm to fully support you as you grow over time.
LifeVantage
What You Sell:
Biohacking products related to fitness, beauty, and nutrition.
Compensation Plan:
You can join in two different ways:
- Preferred customers – buy products at wholesale prices.
- Distributor – earn commissions from your downlines and sales.
They provide a complex plan for beginners. But you can thrive if you know how to sell and commit to the long term.
Here are the ways you can generate income:
- Retail sales – paid per sale
- Smart start bonus – paid weekly
- Launch bonus – paid weekly
- Royalty commission – paid monthly
- Generational matching bonus – paid monthly
- Elite bonus pool – paid monthly
- Rank achievement bonus – one time bonus
- Business center – an additional leg to earn commissions on
WOR(L)D GN
What You Sell:
Lifestyle technology and wearables
Compensation Plan:
Their pay plan is simple, making it perfect for you if you’re just getting started with MLM companies.
You simply add to your downline as you level up.
Start as a team member, where you simply sell products. Then, move up to a team builder, supporting your two groups (or legs).
As you build your legs, you can add even more downlines within both the right and left team as a team developer.
Total Life Changes
What You Sell:
Lifestyle products, including beauty and hygiene, skin care, and essential oils
Compensation Plan:
Join as a representative, then start earning on the products you sell.
Their pay plan is a hybrid binary. Here are several ways to earn:
- Retail profits and commissions – earn more as your base of customers buy products
- Fast Start Bonus – 50% commission on the first order from your referred independent business owner (IBO)
- Binary pay – commission from who you refer and the purchases made from those people referred, as well through your two teams
- Matching bonus – up to 50% match from what referred IBOs earn from their binary commission
- Lifestyle bonus – reimbursements up to $1,500 to offset your business expenses, which is paid monthly
Vida Divina
What You Sell:
Nutritional products, such as supplements and tea, as well as skin care products
Compensation Plan:
Their pay plan is also a binary format. First, you join as a franchise affiliate and maintain an active status.
You stay active by making a minimum order of 120 personal volume (PV). Then, you can add personal sponsored active affiliates on both your left and right team.
As you grow your business, you can rise through the rankings, from qualified affiliate all the way to crown diamond. You’re also able to earn bonuses along the way.
Thrive
What You Sell:
Lifestyle products geared toward weight loss
Compensation Plan:
This pay plan fits both novices and experienced professionals alike.
As an brand promoter, you earn 20% on your customers’ orders. When customers enroll in the Autoship Program, you get free products for yourself every month.
You also earn in the unilevel method — up to 8% in each level of your placement tree.
The best part about the Le-Vel pay plan — the bonuses. You earn bonus cash towards luxury vehicles and even enjoy Lifestyle Getaway trips.
doTerra
What You Sell:
Lifestyle products, including their renowned line of essential oils
Compensation Plan:
They offer three ways to earn:
- Retail profit (paid monthly) – 25% of profit made from retail customers
- Fast start bonus (paid weekly) – earn on new enrollee’s PV for the first 60 days
- Power of 3 Bonus (paid monthly) – build three levels of matrices and earn on each level
Mary Kay
What You Sell:
Cosmetics and other beauty products
Compensation Plan:
They’re one of the most popular MLM companies for a reason — they take care of you.
Their rewards are what set them apart, their most popular one being the iconic pink Cadillac. They also offer luxury trips and rewards like jewelry and tech gadgets.
The earning potential is clear cut: every retail sale you make, you take home 50%, which is one of the highest percentages in the MLM industry.
Trevo
What You Sell:
Wellness beverages
Compensation Plan:
Similar to other MLM companies, you can generate income in several ways. They follow a single-line matrix system.
Within the Trevo “8 Ways To Empowered Living” Compensation Plan, there are plenty of approaches that fit your level of interest.
Their business system is based off of their PowerStart Business Systems.
Select the best system that fits your needs. They vary by the number of bottles you buy.
This is how you start developing customers and team members. Then, earn on all eight generations of your product sales within your team.
You can also earn on bulk sales and earn rewards, like luxury car incentives.
5Linx
What You Sell:
Home essentials, business solutions, and wellness products
Compensation Plan:
Their compensation plan is a bit complex for beginners. But it offers a lot of awesome bonus opportunities.
You can climb the ranks of earned positions, taking home both additional bonuses and residual commission on personal sales, referred sales, and team sales.