Compensation Plan Types and Tree Structures

This article provides a brief overview of the different compensation plan types and their tree structures, used within the Platform.

Binary

The main facet of a Binary plan is that each associate can only directly enroll two people.

Basic Binary Structure

The next level can then enroll two people, and so it goes. It is possibly, however, that an associate can sponsor more than two people; they have to place the new enrollee further down the tree, in the next available spot.

Placing new enrollee down the tree

This creates what are known as legs; a Right Leg and Left Leg. Typically, one of the outer legs begins to develop more and is referred to as the Strong Leg (the leg that gains more volume); The other leg being the Weak Leg.

Strong Leg

Unilevel

Unilevel plans are meant to be simple, functioning with one business level. All enrollees are all placed on the same level below their sponsor. Each level is assigned a commission percentage. An associate, depending on your compensation plan rules, can collect their percentage from the different levels below them even though they only personally sponsored the first level.

Unilevel Tree

Unilevel plans are enormously flexible, allowing you to create a unique compensation plan for your company.

Matrix

Unlike the Unilevel plan, a Matrix has a fixed width and depth; meaning, an associate can only sponsor a specified amount of people on their first level, as well as a limited amount of levels below them.

An example of a Matrix depth is a 3x3. The top associate only can only sponsor three people on their first level.

Matrix Tree Level 1

Each on of the Level One associates can each sponsor three people.

Matrix Tree Level 2

Who then can each sponsor three people.

Matrix Tree Level 3

Now the 3x3 Matrix Tree has:

  • Three associates is Level One
  • Nine associates in Level Two
  • 27 associates is Level Three

Resources

Compensation plans are a complicated business and they rely on these tree structures—possibly using a combination of or even all of them.

DirectScale is here to support your growing business. On your path to success, be sure to check out the following resources:

Was this article helpful?
2 out of 2 found this helpful
Previous Next

Comments

0 comments

Please sign in to leave a comment.