Genealogy Tree shows the relationship between associates and customers within an organization. A Genealogy Tree functions similar to a family tree, but with the Parents, Sponsors, and Associates making up the members. A Generation is a level in the tree. In the following image, you can see a tree with several levels (Generations).
The structure of the tree varies depending on the Compensation Plan. You can read more about tree types here: Tree Types Overview.
In a Unilevel type, the tree levels are different from Generations and usually involve Compression. In the Compensation Plan, you create a Rule for what you’re compressing on; rank, Active status, etc. Let’s say, if you’re compressing on rank and that rank is called “Star”. The tree Generation would be from one Star rank to another. Basically, you walk down the tree and everyone becomes your Generation 1 until you run into another Star rank.
As soon as you run into a Star rank, that Generation stops. Everybody below them starts your Generation 2 and you continue on down the tree. The great thing about this Compression is that even though you may have only personally enrolled a few people, you still get a percentage of your Generations volume. So, if your Compensation Plan says you get 15% of your Generation 1, then you will earn 15% of all of the Generation people’s volume, even though you didn’t enroll all of them. Same with the latter Generations. You could get 10% of your Generation 2’s volume and 5% of your Generation 3’s volume.
That’s the basics of Generations and Compression Rules. For more commission resources, check out: