Generation plan in MLM ( Multi-level marketing ).

Generation plan in multilevel marketing also known as Repurchase plan, where an associate can sponsor N number of business partners in their 1st level and they get benefited from product purchase from the company.

Generation plan key features.

Topics to discuss in generation plan :

1. Fixed distribution.
2. Types of product for repurchase model.
3. Importance of product in Repurchase model.
4. Binary plan Vs Generation plan.
5. Types of income in generation plan.
6. Demo software of generation plan.

1. Fixed distribution in generation plan.

Unlike binary plan, generation plan has a fixed distribution amount on the purchase of specific product.

Fixed distribution = NO Risk. ( to the company )

Which also means no capping. An associate can add ‘n’ number of business partners in his/her first level.
This plan is most beneficial to the manufacturers.

2. Types of product for repurchase model.

Fast -moving consumer goods ( FMCG ) products also known as Consumer packed goods ( CPD ) is the most famous category in repurchase model.

Fmcg products are most consumable products which can be used daily. To advertise them in tv, newspaper or any other platform it’d cost lot of money on less ROI.

Whereas launching in a repurchase model simply glorifies its sale since numbers of associates will sell it on commission basis.

Amway, Vestige, Oriflame are few famous companies working on generation plans in the world.

3. Importance of product in Repurchase model.

As we have discussed the basic features of repurchase model, we know it’s success depends a lot on the product itself.

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Household product.

If the chosen FMCG product is an household product it increases the company’s success chances by 60%.

Household products comes in daily need which implies associate will buy on a regular basis.
It helps the company as well as the distributor in building a passive income.

Best quality / Reasonable rate.

FMCG product which company chooses for the process should be the best quality in its category.
Majority of public checks rate in the market before buying any product, so quality and rate should be reasonably best.

Wide range of products.

As the policies and the features of the model suggest, a wide range of product will be most beneficial for both consumer and company.

It gives a variety of options to the consumer and a positive impression about the company itself.

4. Binary plan Vs Generation plan.

i) Capping

Unlike Binary plan, Generation plan has fixed distribution which reduces all the risk for the company.
The distribution amount is decided at the beginning by the company.

Since there is no risk to the company there is no capping.
No capping implies there is no stopping the associate from earning his target amount.

ii) Package amount.

There is a major difference in generation plan and binary plan.

In Binary plan, package amount are usually high to lower the risk for the company.
High-margin products like suit length, artificial jewellery, watches etc are chosen to set a high package joining amount.

Whereas in generation, products are basically chosen to make it most suitable for repurchasing.

5. Types of income in generation plan.

income differences.
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i) Sponsor/Direct Income :

Amount of income fixed on joining a new associate under you in the network is known as direct income/ Sponsor income .

It can be percentage of the joining package or a flat amount of joining package.

ii) Retail Profit :

In generation plan company offer product purchase from physical stores or E-commerce.

Net worker gets 5% to 20% flat discount on MRP while purchase product and it’s called Retails profit for them.

iii) Performance Bonus :

Performance bonus is purely based on turnover which includes your self turnover and team turnover.

Many network marketing companies use Business Volume or Sales Value for turnover.
Performance bonus is level wise and mostly monthly basis.

Like if you have completed 500 BV then you will earn 5% of it and it increases gradually.

iv) Car/House Funds :

Network marketing company having generation plan tend to have loyal customers for their products in the form of Net worker.

They offer funds on company turnover when Net worker/distributor achieve specific condition.

Net worker achieve all levels of Performance bonus then they will be eligible for Car fund and it will be x% of company total turnover.

v) Franchisee Income :

Multi-level marketing company with generation plan offer franchise to their associate.

It is Win-Win situation for company as well associate. Company have proper distribution channel if they have more franchisee.

Associate will have availability of product nearby whenever they require. Company offer 2% to 5% of turnover of that particulate franchisee.

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6. Demo software of generation plan.

One thing Everyone should be focused on before starting a venture is to make the best possible software for his firm.

YAKS Group has been nominated for fastest growing startup and is going to be awarded very soon for its MLM quality software, 24*7 Support team, customers highly rated services.

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