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Comparison of MLM software compensation plans for 2022

Comparison of MLM software compensation plans for 2022
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As you are all aware, MLM software is all about MLM. If you still do not know what MLM software is, you ask. Anyway, we are discussing the same here.

An MLM software program assists those in the multi-level marketing business or those who are starting one. You may think: what is the importance of such software? What happens when you run a business without MLM software?

The process will be much more challenging when you run a multi-level marketing business without software. MLM-based businesses all follow a hierarchical structure and have an expanding nature, so they may be difficult to track.

This MLM software is not designed for a single thing. And it offers features that are:


MLM software handles sales, product orders, tracking, and more. This all helps the user to maintain control over their enterprise. Having control over the system helps to optimize the performance and allows you to make as many sales as possible.


Modern MLM software comes with the ability to integrate all types of marketing systems. including SEO campaigns, EML campaigns, mobile applications, and many more. This all helps not only to assist in reaching the consumer but also those interested in joining the multi-level marketing company.

Distributor and customer management:

An efficient MLM software has the ability to manage distributors and customer management. This software assists with everything from stories and accessing information to generating sales reports, etc.


So it is very important that a business account be very accurate and precise. So they store their details very carefully in a particular book. Network marketing uses more meticulous books. Accounting in network marketing not only includes the details of receiving payments, tracking inventory, and selling products.  But it also provides income tax-related reports, sales tax, payments to distributors, etc.  

When it comes to MLM software compensation plans, every MLM business has its own MLM plan . Take a look at the basic mlm plans.

Binary Plan MLM software

The Binary MLM plan is the most widely used MLM software plan because of its ease of use. This works on the structure of two legs, left and right leg for each user, and it grows to unlimited levels. Two compensation plans are included.

  • Sponsor bonus:

Sponsor bonuses are also known as referral bonuses or introducer bonuses. This bonus is achieved by recruiting new members to the network. The bonus amount is based on what the company has already defined.

  • Matching bonus:

This bonus is earned when new members are introduced to the down-line network. The income earned by a downline member is also earned by the parent member who sponsored the downline member.

  • Pairing bonus:

A pairing bonus also called a binary bonus, is when the user balances both legs with active members, the tree gets completed, and the user gets the bonus as a result of the sales or work of downline members.

Unilevel Plan MLM software

This is an unlimited-width plan. Here, one sponsor will have several distributors on a single line. This plan is commonly known among beginners. This is the simplest and easiest plan of all MLM plans…

Compensation in a uni-level plan is,

  • Sponsor bonus:

 Just like all other MLM plans. A sponsor bonus is given to the distributor or sponsor for recruiting new members to the system as downlines.

  • Level commission:

A level commission is earned when down-level distributors achieve sales. In a uni-level plan, each downline member may possibly have unlimited downlines under them.

  • Fast start bonus:

Newly recruited members receive the fast bonus as a starter benefit. This is to ensure a higher sales commission on the first new sales of new recruits, and it pays according to new recruits.

Matrix MLM Plan Software:

The matrix plan is also called a forced matrix, and it is formed as a pyramid tree structure. The width and height of the tree structure are restricted in this plan. It doesn’t have a leg system either.

In this case, compensation is calculated with the formula of width*depth. There are four types of compensation in the matrix MLM plan

  • Sponsor bonus:

A sponsor bonus is earned after filling up the first level of the matrix MLM plan. This is the incentive for members to recruit new members.

  • Level commission:

A level commission is earned when the first three members recruit new members and gain a sponsor bonus. Then the next level members are able to recruit three new users to earn an even greater bonus.

  • Matrix bonus:

This is also known by the name of forced matrix bonus. A user gets the matrix bonus when he has completely filled his matrix with downline members.

  • Matching bonus:

The matching bonus is actually an extra benefit to the sponsors. When a downline member is getting compensated the sponsor gets a certain percentage of that amount.

Board Plan MLM software

Board plan MLM software is also known by the names Table Plan or Matrix Cycle Plan. It is suited for a network with limited members.

The compensation and bonus make this plan an exciting offer to explore. The bonuses are

  • Referral bonus:

Like all other plans, board MLM software also has a referral bonus when sponsors recruit new members or for sales done by downline members.

  • Level commission:

This commission is earned from the sales carried out by the downline members.

  • Board completion bonus:

As the name indicates, the user will receive the bonus when completing the cycle of the board plan.

  • Matching bonus:

A matching bonus is earned or received by the sponsor when a downline receives a  bonus.

  • Position bonus:

A position bonus is a bonus or commission a sponsor gains as a result of the efforts of downline members.

  • Cycle commission:

The cycle commission is also referred to as the board split commission. This commission is received when the sponsor moves to another board during the cycle of the board plan.


In this blog, we have seen the most common MLM software compensation plans and how they earn bonuses. Each plan has its own benefits.

Businesses can choose any plan according to their price range, and many MLM software comes with a customization option. Apart from these four plans, MLM software includes many more plans like hybrid plan MLM software, stair step plan MLM software, flower looming gift plan, party plan MLM software, and many more.

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