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The term "Generation MLM Plan" typically refers to a specific type of compensation plan used in multi-level marketing (MLM) companies. The Generation MLM Plan is designed to reward distributors for their sales efforts and the sales performance of their downline organization. Here's an overview of how the Generation MLM Plan generally works:


Generational Structure:

The Generation MLM Plan is characterized by organizing distributors into generations or levels based on their relationship to the original distributor or "sponsor." Each generation represents a group of distributors connected through a hierarchical structure.


Compensation Structure:

The Generation MLM Plan offers various ways for distributors to earn commissions and bonuses. These typically include: Retail Commissions: Distributors earn a percentage of the sales they make directly to customers. Overrides: Distributors receive a percentage of the sales generated by their personally sponsored distributors or downline team. Generation Commissions: Distributors can earn commissions based on the sales volume generated by distributors in their "generations." A generation typically represents a level of depth or downline from the distributor.


Generational Depth:

In the Generation MLM Plan, each distributor is typically considered the first generation. The distributors they personally sponsor become their second generation, and those sponsored by the second generation become the third generation, and so on. The depth of generations can vary based on the specific MLM company's plan.



To ensure fairness and proper payout, some Generation MLM Plans implement a compression feature. Compression means that distributors who are not actively building their downline or generating sales volume may be skipped over, and commissions may be paid to the next active distributor in the respective generation.


Rank Advancement:

Similar to other MLM compensation plans, the Generation MLM Plan often includes rank advancements. As distributors achieve higher ranks through meeting specific criteria such as sales volume, team growth, or leadership development, they may unlock additional benefits, bonuses, and higher commission rates.