How to Make a MLM Plan

A powerful MLM (Multi-Level Marketing) plan is the foundation of every successful network marketing business. Whether you're launching a traditional MLM or a crypto-based platform, creating the right compensation plan is critical to ensure growth, sustainability, and member satisfaction.

What Is an MLM Plan?

An MLM plan defines how your network structure operates and how income is distributed among participants. It covers the logic for:

• Member placement
• Commission levels
• Bonuses and rewards
• Referral tracking
• Incentive structures

Step-by-Step Guide to Making an MLM Plan

1. 1. Choose Your MLM Model
   There are various types of MLM compensation plans. Choose one that aligns with your business goals:
   • Binary Plan: 2 legs (Left & Right), balanced growth required
   • Matrix Plan: Fixed-width and depth (e.g., 3x5 matrix)
   • Unilevel Plan: Unlimited width with multiple referral levels
   • Generation Plan: Emphasizes leadership and group volume
   • Hybrid Plan: A mix of the above strategies


2. 2. Define Commission Percentages
   Clearly outline how much each member earns per referral or team activity. Example:
   • Direct Referral Bonus – 10%
   • Level Income – 5% on levels 1 to 10
   • Binary Match Bonus – 10% of weaker leg
   • Leadership Pool Bonus – based on performance rank


3. 3. Set Rank and Qualification Criteria
   Introduce rank levels to encourage performance and engagement. Example:
   • Bronze – 2 active referrals
   • Silver – 10 team members
   • Gold – 50+ team members and $5K volume


4. 4. Incorporate Wallet or Token Support (For Crypto MLM)
   If your MLM operates on blockchain, consider:
   • Which token will be used (USDT, BNB, ETH, custom token)
   • Smart contract logic for automatic payouts
   • Gas optimization and wallet compatibility (MetaMask, Trust Wallet)


5. 5. Plan for Sustainability
   Avoid overpaying or creating infinite payouts. Cap earnings, set reinvestment rules, or introduce holding periods to protect the plan from collapsing.


6. 6. Visualize Your Plan with a Flowchart
   Use a flowchart or placement tree diagram to visualize how users are added and paid. This helps developers and marketers explain the system clearly.

Pro Tips

• Test the plan using mock user data
• Consult with an MLM software developer for logic execution
• Keep payout models simple for easier adoption

Conclusion

Building an MLM plan isn't just about rewards—it's about creating a system that motivates, scales, and lasts. Whether you're running a traditional product-based network or launching a crypto-powered MLM, a well-structured plan will determine how far and fast you grow.