Top 5 Best MLM Compensation Plans For 2024
Would You Like To Know If Joining MLMs Are Worth It?
Are you interested in learning more about the multi-level marketing MLM business model?
Are they scams or legit business opportunities?
Today we’re going to review some of the characteristics of a good MLM company...
And in the end, we’ll talk about which is the right business for you.
This review has been thoroughly researched with information and testimonials that are available to anyone in the public. Any conclusions drawn by myself are opinions.
Why Listen To UsMy name is Josiah, and this is my Dad, Joel.
Together, we make up the team here at Scamrisk.
If you’ll let me bother you for two minutes, I’d like to quickly explain why I’m even here writing this review.
In early 2020, I had just graduated from college & had no real career prospects.
I knew I was destined for something more, but I had no clue how I was going to make it happen.
I had this sinking feeling in my gut all the time… like the “big man upstairs” had accidentally given me the version of life where I’d be mediocre forever, instead of the one where I was, ya know – happy & fulfilled.
I had fiddled around with some different online businesses in college:
Some random MLMs, a bit of affiliate marketing, a (failed) dropshipping store or two, all the usual suspects.
Even my dad had been involved in MLMs back in the day… selling knives & other random nonsense people (probably) didn’t need.
All I really wanted was to find something that was going to actually work for me.
Maybe those things had worked for others, but for me it all turned up a fat “0” in the bank account department.
So I searched! And searched… and searched… and searched…
And eventually, I somehow stumbled upon a program that promised to help me build an income online (read about it here if you’re curious).
I didn’t really want to be “rich”.
The thought of making a reliable $5K per month & not having to worry about clocking in to a 9-to-5 ever again was all I needed.
Sure, there were people in the program doing high-6 and low-7 figures per year… but that wasn’t what I was out for.
I just wanted to provide freedom for myself, and if I was lucky, take my family along for the ride.
Fast forward a few days and a few phone calls & I was enrolled!
Here’s the first “money making website” I put up:
I built that site in 2020, and it still makes me $1,500 per month. It’s a basic 5 page website I built based on a template the program provides.
The best part to me? My dad and I get to do it all together!
So between the:
Is why I recommend local lead generation as my #1 business model for making money online.
Sure, it takes some work and dedication – but anyone that tells you that there’s a business out there that requires no work is selling you a lemon.
I’m not saying you need to sign up for the same program I did, but I would definitely recommend giving the business model a peek!
MLM Review: What Is An MLM?
Chances are you heard about many of these MLM compensation plans because someone - a friend or maybe a family member - introduced you to them. Maybe you attended an online workshop or webinar, or maybe an in-person information session.
Your head’s probably spinning. This might be the first time you’ve heard about a real way to make money outside of a typical job.
So first off, congratulations!
You’ve just entered a whole new world... the world of making money on your own terms.
However, you came in through the wrong door.
You pay some money upfront for the “opportunity” to sell products.
The products are typically low-quality but with high price tags (because fancy labels and stuff).
You’re told that the key to building your own successful business is selling these products to friends and family, and getting them on a subscription (so you get “monthly recurring revenue”).
Unfortunately, like most people who get taken in by these types of schemes, you’ll quickly discover that the well runs dry faster than you imagined.
After all, they make it sound really simple. “Just get 5 people you know onto this magic widget, and things will just grow from there.”
And in your head, you think “How hard can it be? I know plenty of people, 5 will be easy.”
But then you do it, and you realize people look at you like you’ve joined a cult. You’ve become “that person”, who joined an MLM, and is now trying to sell questionable products or services to everyone they meet.
It puts a strain on your relationships, and you end up stuck between two worlds.
But it’s not your fault. These companies spend millions of dollars each year figuring out exactly how to brainwash and recruit people. And that’s why we’re here.
To help you find a better way before it’s too late.
So, what if there was a way you could build an income stream that’s actually passive?
A passive income stream that doesn’t require:
- Selling to friends and family
- Selling to strangers
- Recruiting people
- Dealing with questionable products that weigh on your conscience
An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000)?
An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day chasing, selling, or managing anything?
If that sounds like something you’d be interested in, check out Digital Leasing.
This is nothing like MLM, and that’s probably a good thing.
However, if you’d still like to know more about the best MLM compensation plans, keep reading.
Tough Questions About MLMs
You’re reading this article because you most likely want to make money, right?
Because many people fall for scams, I’ve committed myself to review various MLMs.
This article seeks clear things up with a few tough questions:
- Is it worth it joining MLMs?
- Can you really get rich with MLMs?
- What is the best MLM compensation plan?
- Are all MLMs a pyramid scheme?
We'll look at the various aspects of the organization to help you determine if it’s best for you. And I'll give recommendations in the end — so you can truly make a wise decision.
MLM Companies: What Are The Top 5 Companies In [year]?
Here are the Top 5 MLM companies with the best revenues earned:
How Do MLMs Work?
So, how do MLMs work to bring home the bacon?
Basically, multi-level marketing is a business model that companies use to bring their products to people via sales representatives.
These sales reps usually work from home and buy the inventory to sell. The multi-level part deals with their capacity to recruit and train people into their "downline". When recruits generate sales volume and also recruit below them, every person above them earns a commission.
Earned income comes from commissions from personal sales volume plus a share of the sales gained by other reps that you have recruited (ie, your downline).
What Is The # 1 MLM Company?
AMWAY has been the #1 Multi-Level Marketing company worldwide for many years. Birthed in 1959, Amway has then developed various products that people have learned to love — household cleaners, laundry detergents, weight loss shakes, beauty care, and more!
Compensation Plans: What Are The Different Types?
Before discussing the best MLM compensation plan, let me show you the different types. The first four are the most common payment plan types are:
What do MLM companies do when they are focused on efficiently increasing distributors’ sales?
They use the Stairstep Breakaway Plan. When an affiliate reaches the topmost rank, he and his team “breaks away” and are directly added as a new tree under the admin.
Unilevel MLM Plan
The Unilevel compensation plan has a single business level where all sponsored affiliates are directly put in the first level. All recruiting work done by a distributor directly benefits him since there is no spillover. The Unilevel Plan is also called the “universal plan” because it is seen in all compensation plans.
Matrix MLM Plan
This is a unique one. The Matrix Plan has fixed depth and width having the first two affiliates on level one (front line). When the front line is filled, the other affiliates get added to the next available slot on the tree (called spillover). To increase group sales volume, MLM companies rely on the Matrix plan.
Binary MLM Plan
Binary compensation plans consist of two legs (right & left) or subtrees under every affiliate. When you add subtrees, a binary tree is created. Later on, with new recruits joining, they flow onto the downlines or better yet, the next business level — and continue to unlimited levels. The Binary compensation plan is quite easy to decipher which helps in getting more recruits.
Home Party Plan
This plan is used to increase product promotion as affiliates invite people to space (usually a homely place) and sell the products with a proper introduction and complete presentation.
This is a popular one.
A “board” is a new tree created for certain members who qualify for specific criteria. A compensation plan may have multiple boards based on the company’s policies. This plan is also called the recycling matrix plan.
To get good retail income and commissions from downline efforts, try the Generation Plan. This plan is structured like a Unilevel Plan but with various generation levels — each with an affiliate and his acquired clients. This plan seems to work great for e-commerce businesses.
Monoline MLM Plan
Also known as “Linear Plan” or “Single Leg Plan,” the Monoline Plan is truly simple and easy to understand. It has a single-line structure with unlimited levels. Its simplicity makes it popular and a usual choice for most businesses.
Best MLM Compensation Plans: What Factors Make For The BEST Plan?
No two MLM compensation plans are alike in the network marketing industry. Compare binary, unilevel, and matrix MLM plans to boost personal sales volume, and downline growth with rank advancement bonuses and cash rewards. The top MLM companies offer passive income, leadership rewards, and a thriving multi-level marketing community.
The truth is, there is no perfect MLM Compensation Plan. Each has its strengths and weaknesses. Do you think the Mary Kay compensation plan will work at Avon? Or the Avon plan with Amway?
The answer is all about being the PERFECT FIT. Is the plan aligned with the company culture and system — direct selling, pricing, field training/culture, leadership development, etc?
Each multi-level marketing company is unique in its approach as a direct selling company.
Avon, Nu Skin, and Mary Kay may all sell beauty items, but they are different in so many ways, too.
So, MLM companies with the BEST and PERFECT FIT actually select one of the primary compensation plan types, use it to establish stable revenue, then use and align other plan types for growth.
That being said, let's talk about the factors you need to look for in a great compensation plan.
MLM Compensation Plan: Building Blocks For The Best Plan
1. Customer-Sales Focus
It's important for MLMs to focus on retail sales to customers who are not also affiliates of the company. Why? To lessen the risk of scrutiny and action by the Federal Trade Commission (FTC). Great MLM compensation plans prioritize this.
2. Customer Commission Or Profit
Early rewards boost the drive of affiliates. When they enroll a customer, they have to earn a commission when orders are placed — usually at 20% to 25%. But those companies who give higher percentages for higher volumes have enjoyed better results.
3. Ranks And Recognition
This is truly motivating. On top of commissions, ranks and recognition are crucial in a good compensation plan. When affiliates move up the different levels, they should also get a title for their rank, plus additional compensation.
4. Rank Advancement Bonuses
The best MLM compensation plans give a one-time fixed bonus when an affiliate moves up in rank towards a properly carved out career path. What a boost this bonus gives to hardworking members. Advancement means growth!
5. Strategic Compression
Strategic compression happens when an upline affiliate is compensated as if ineligible or inactive members were not present in the organization. This way, hardworking affiliates are still encouraged despite the inactivity of others.
6. Activity Requirements
If companies want to increase sales, they should establish activity requirements to reward desired behaviors. The goal is to increase sales, company profits, and affiliate retention.
7. Fast Start
The best MLM compensation plans start fast and strong. By rewarding new recruits, companies have seen great benefits on affiliate retention.
8. Career Path
An affiliate’s career path is the center of a good MLM compensation plan. Making sure that they have a future in the company motivates affiliates to work hard, stretch themselves to reach higher, and remain in the company. This path determines how affiliates will sell, recruit, lead, build their team.
9. Mentoring And Team Building
Building and mentoring a robust team must be rewarded. Since the whole MLM organization exists by the presence of each member, affiliates need to be appreciated for doing their part in team building.
10. Leadership Rewards
Company leaders are potent influencers. Thus, they need to be rewarded well for coaching, mentoring, and growing their downline.
11. Recruiting Rewards
Recruitment activities should also be rewarded, on top of compensation for sales volume. But, due to compliance regulations, recruitment should not be the focus of MLMs. Nevertheless, these bonuses can be the cherry on the top of your cupcake.
7 Steps To Choosing An MLM Compensation Plan
Now let's talk about 7 steps to create a good compensation plan for your business:
1. Understand Your Company’s Objectives
Before anything else, look into these key aspects of your company:
- Product type
- Product or service offered
- Corporate goals
- Cost to consumer ratio
- Ease of sales
- Distributor experience
- Room for incentives, etc.
2. Do Your Research
Study the terrain before entering it. Try to watch educational videos on compensation plans. Or read thoroughly on relevant subjects. These will give you a head start.
3. Know Your Numbers
Before you dive into compensating your affiliates, understand that it's a numbers game. Be familiar with your cost of goods, distributor price, retail sales price, etc. By knowing more, you will be more ready to face questions.
4. Choose An MLM Compensation Plan
Next step, you can now select from the various standard types of compensation plans which I have discussed above.
5. Hire An MLM Marketing Agency
Getting quite overwhelmed? Don’t worry. You can hire an MLM marketing agency to help set your goals, navigate through challenges and set realistic expectations. They will help you sort out the best compensation plans.
6. Consider An Incentive Program
Sometimes, there is really a need for that extra boost for your sales team. Why not consider an extra bonus or a profit-sharing program. Taking care of your team will ensure your success.
7. Be Ready To Make Changes
You certainly will make mistakes — despite your research work and preparation. At yearend, always take time to assess. Reexamine your plan and make changes if necessary. Are you still within budget? Is your team motivated?
8. Stick To What Works
Simply put — keep it simple. Yes, you can be unique but don’t go too far from the standard. Learn from the mistakes of other MLM companies. It pays to be wise and use the best compensation plans.
What Is The Highest Paying MLM Company?
AMWAY is currently the highest paying multi-level marketing company.
Why is that?
Check out the benefits they offer to affiliates:
Amway Benefits For Associates:
- Buy discounted products at distributor price
- Participate in Loyalty Program (loyalty points can be redeemed as products)
- Gain points for purchases
Amway Commissions And Bonuses:
- Commission: 3%
- Retail profit:15% of sales
- Income: retail profit + commission
Which MLM Has The Best Compensation Plan?
Here are the Top 5 MLM companies that I believe have the best compensation plan.
Products: Lifestyle brands (Nutrifii, Puritii, and Nucerity)
Ariix uses the industry’s first multiline plan called Activ8. This gives you unlimited width and depth, unlike matrix plans. On top of that, you get a 50% payout — the highest commission structure right now.
Lastly, they use an algorithm that computes cost-of-living-increase to adequately support you over time. Activ8 also allows members to enroll under one affiliate and then again in a separate team.
This promotes cross-line support and team building.
Indeed, Activ8 is one of the best MLM compensation plans right now.
Products: Biohacking products (fitness, nutrition, beauty)
There are 2 ways for you to join —
- Preferred Customers – purchase products wholesale
- Distributor – gain commissions via sales and from your downline
Initially, the pay plan can be complicated. But if you sell well and are in for the long haul, then you can do quite well.
You can earn income through these avenues:
- Retail sales
- Smart start bonus
- Launch bonus
- Royalty commission
- Generational matching bonus
- Elite bonus pool
- Rank achievement bonus
- Business center
3. Total Life Changes
Products: Lifestyle products (beauty, skincare, hygiene, essential oils)
Upon joining as a representative, you can begin earning on products sold. They use a hybrid binary plan. Here are ways you can earn:
- Retail profits and commissions
- Fast Start Bonus
- Binary pay
- Matching bonus
- Lifestyle bonus
Products: Lifestyle products (weight loss)
When you become a brand promoter, you gain 20% on client orders. And you enjoy free products when customers join the auto-ship program. Via the unilevel path, you earn up to 8% per level of your placement tree. And to top it all, there are cash bonuses towards luxury cars and vacations.
Products: Lifestyle products (renowned line of essential oils)
Here are the three ways you can earn:
- Retail profit
- Fast start bonus
- Power of 3 bonus
DoTerra doesn’t only pay well. They’re also the fastest-growing MLM worldwide!
DoTERRA has spread like wildfire since its founding in 2008. Within seven months, it reached $1 million in sales! In 2012, doTerra was hitting $1 million sales days and by 2015, it reached a whopping sales revenue of $1 billion!
But it doesn’t stop there. DoTerra has grown to more than 3 million affiliates of “Wellness Advocates” and by the end of 2016, they recruited 30,000+ affiliates in a convention!
But Aren't MLMs Scams and Pyramid Schemes?
Not technically. You can make money with MLM programs, but it’s definitely not as easy as the companies makes it sound.
There’s a ton of work to be done upfront, no real guarantee of success, and - most importantly - the actual commissions are pretty small.
Now, there’s nothing wrong with front-loading the work and making the money later.
But if you’re grinding it out for 3 months and then your reward is a $50 commission, it’s not really worth it.
What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month?
And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?
And what if you could double it next week?
Well, that’s the power of Digital Leasing.
And, unlike an MLM, you can legitimately do this from anywhere. It’s a true lifestyle business.
Your laptop and an internet connection is all you need.
Some of the most successful students in this program run their entire 6-figure businesses from:
- A camper in the middle of the woods
- A beach chair on the water in Mexico
- A small villa in Greece
They’re able to travel around, living their lives first, and focusing on their income second.
Because even if they stop working for an extended period of time, the money keeps coming in.
So adventure, memories, and experience are the top priority.
And they never have to worry about how to pay for the next trip, or consider asking for time off.
If this sounds more like the type of life you want to lead, just click here to find out more about Digital Leasing.
Are there alternatives to MLMs?
Yes, there are plenty of other business models to choose from if you want to pursue making money online. Here are just a few:
What Is Our #1 Recommendation For Making Money Online In 2024?
Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.
While there may be no “perfect business”, the research IS conclusive:
Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Leasing is for you.
1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Leasing business.
And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.
Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.
This is only possible if you have an income stream that’s not tied to your time.
2) You Own & Control EVERYTHING: With MLMs and Network Marketing, you don’t really own anything. You have no control over the quality of products. You don’t even own your “team”.
Look at the fine print for most of the agreements folks sign when they join one of these companies. At any point, the company can change your commission structure, reduce your profit margins, or kick you out entirely.
With Digital Leasing, you own the assets, which means you have all the power and all the control.
3) Little To No Startup Costs: It’s possible to get into Digital Leasing with zero dollars upfront.
Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket...even before you do any work.
Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.
4) No Inventory: Alright, so most MLMs don’t make you buy the products and fill your garage with them anymore (unlike the good ol’ days), but you’re still in a physical products business.
And physical products always have physical limitations. Even if you don’t have to manage the inventory, you still have to deal with supply chain shortages that cause major delays.
Imagine finally landing your first customer, and then losing them after one sale because they had to wait 6 weeks to get their order.
With Digital Leasing, a 100% online business, you never even have to think about that risk.
5) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).
Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.
Because you have more knowledge, more experience, more results, and more momentum.
If you wanted to double your income with an MLM, you’d have to double your customers OR double the average order size of your existing customers. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.
6) Make Money Helping Real People: This part is what makes it all worth it. In an MLM, your “upline” might convince you that what you’re selling improves people’s lives, but deep down, you likely know that’s not true.
Most of the time, you’re either selling a dream or a poor-quality, overpriced product with a fancy label.
And that makes it pretty hard to sleep at night.
But with Digital Leasing, you’re actually helping people by solving your clients’ biggest problem:
Small, local businesses need more customers, and with Digital Leasing, you are unleashing a flood of happy, paying customers for these businesses.
You make money by helping them make money.
Not a big, faceless corporation either...a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.
Once you see how Digital Leasing makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.
Now, the choice is yours.
You could continue browsing, looking at opportunities like MLMs which could one day make you money.
You could continue researching, never making a decision.
OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Leasing.
A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.
All while genuinely helping real people who are grateful and happy to pay for it.
If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Leasing.
#1 Business Recommendation
We each make around $10,000 per month with the help of this system.yes, show me more