Generation Plan MLM Software Developers – All MLM Plans
Generation plan MLM software developers build the software that runs a generation compensation plan: it tracks every member, works out each leader's rank and pays the commission on every generation of their downline. Daani IT Solution is a generation plan MLM software development company with more than 20 years in MLM software, and this page is its guide to all MLM plans – what each plan pays, which product it suits, and what the software must do for it.
A generation MLM plan is a compensation plan that pays a leader a commission on the sales volume of each generation in their downline, where a generation ends at the next member who holds the same qualifying rank. It is a profit-sharing plan: every product a member sells shares its profit with the qualified leaders above.
All MLM plans at a glance – names and how they pay
MLM companies use a handful of plan names again and again. The plan decides how members are placed, how deep the commission goes and which products sell best. The table compares the common commission plans side by side.
| Plan name | How it pays | Width | Best suited to |
|---|---|---|---|
| Generation plan | A rate on the whole volume of each generation, falling with each generation; gap commission between ranks | Unlimited | Consumable products with monthly repurchase and a clear rank ladder |
| Unilevel plan | A rate on each level's sales volume for a fixed number of levels | Unlimited | Simple plans with repurchase products |
| Binary plan | A pairing commission on the weaker of two legs | Two per member | Fast team building with a single entry product |
| Matrix plan | A commission per level inside a fixed width and depth (for example 3×9) | Fixed | Subscriptions and low-cost memberships |
| Board plan | A payout when a board fills and the member cycles out to a new board | Fixed board | Small entry fees and donation-style plans |
Read the generation MLM plan page for the generation structure in detail, try the unilevel MLM calculator for level-by-level numbers, and see the MLM software overview for binary, matrix and board plan software.
How a generation plan pays – generation, level and gap commission
In a generation plan the level of a member matters less than their rank. A leader earns on the first generation – everyone below them down to the next member with the same rank – then on the second generation below that member, and so on, at a lower rate for each generation. A single generation can hold many levels and many people.
- Generation commission: a rate on the sales volume of each paid generation, for example the first generation at the highest rate and the last at the lowest.
- Gap commission: the difference between a leader's rate and the rate already paid to a lower rank in the same line, so the leader is rewarded without paying the same volume twice.
- Repurchase commission: the monthly reorders of customers and members keep the volume in every generation, which is why the plan suits consumable products.
- Rank qualification: a leader is paid on a generation only while holding the rank that defines it; the software checks the rank every commission period.
What generation plan MLM software developers build
Generation plan software has to evaluate ranks before it can draw the generations, so it needs a stronger commission engine than a simple level plan. Daani's generation plan MLM software includes:
- a configurable commission engine for generation, gap, repurchase and rank bonuses – the plan's names, rates and depth set by the company;
- member and distributor management with a genealogy tree that shows every generation;
- product, order and repurchase management, with an online store for members and customers;
- an e-wallet, payout requests and online payment integration;
- sales, commission and performance reports on a secure admin dashboard;
- multi-language and multi-currency support, including USD, plus a mobile app.
Choosing a generation plan MLM software development company
Before you sell your first product, ask any MLM software company to run your own plan in a demo: enter your rank rules, generation rates and gap commission, and check the payout on sample orders. Ask how the plan can be changed later, how the website and member area are hosted and secured, and what support you get after launch. Daani offers a free demo, customization of the plan and 24x7 support, and gives a quote once your plan is known.
See your generation plan in the software. Book the free demo trial or call or write to us with your plan and we will show you how the commissions are calculated.
Generation plan FAQ
What is a generation plan in MLM?
A generation plan is an MLM compensation plan that pays a leader a commission on the sales volume of each generation in their downline. A generation starts below the leader and ends at the next member who holds the same qualifying rank; that member starts the next generation. The plan pays a set number of generations, each at a lower rate.
What is a gap commission in a generation plan?
A gap commission is the difference between the commission rate of a higher rank and the rate already paid to a lower rank below it in the same line. If a leader earns 10% and a member below earns 6% on the same sale, the leader receives the 4% gap. It rewards leaders without paying the same volume twice.
How many generations does a generation plan pay?
Most generation plans pay three to six generations, with the rate falling from the first generation to the last. Higher ranks often unlock more generations. The exact names, rates and depth are set by each MLM company in its own plan.
Which products suit a generation MLM plan?
Consumable products that customers repurchase every month – health, wellness, cosmetics and household products – suit a generation plan best, because the repurchase volume keeps every generation paying. The plan shares the profit of each product sale with the upline leaders.
Is generation plan MLM software free?
No. Daani's generation plan MLM software is a licensed product, set up and customized for each MLM company. You can try it first in the free demo, which shows the commission plans, reports and member area before you call for a quote.
