MLM Compensation Plan Reviews

Network Marketing Compensation Plan Reviews:

At Laptop Lifestylers, we analyze MLM compensation plans with complete independence—no sponsorships, no bias. Whether you’re a new distributor comparing opportunities or a seasoned pro optimizing earnings, we break down how different pay structures work, their real earning potential, and hidden pitfalls.

Why Compensation Plans Matter

Your income in network marketing depends entirely on:
✔ The compensation model (binary, unilevel, matrix, etc.)
✔ Commission percentages and thresholds
✔ Team-building requirements
✔ Product purchase quotas
✔ Bonus structures and limitations

We dissect these elements so you can choose the right plan for your goals and avoid costly misunderstandings.

Types of MLM Compensation Plans

1. Unilevel Plan

Used by: Amway, Modere, some Nu Skin teams
How It Works:

  • You recruit unlimited frontline distributors (Width)
  • Earn commissions on 5-10 levels deep (Depth)
  • Typically has monthly personal volume (PV) requirements

Pros:
✅ Simple to understand
✅ Rewards wide recruiting
✅ No “leg balancing” required

Cons:
❌ Limited depth in most plans (caps at 5-10 levels)
❌ Requires consistent personal sales
❌ Top-heavy—leaders earn disproportionately more

2. Binary Plan

Used by: Isagenix, LiveGood, Enagic, many crypto/online MLMs
How It Works:

  • You build just 2 primary legs (Left & Right)
  • Commissions based on weaker leg’s volume
  • Often includes fast-start bonuses

Pros:
✅ Fast commissions from team volume
✅ No width pressure (only 2 frontline recruits needed)
✅ High earnings potential if teams are balanced

Cons:
❌ “Leg draining” issues (weak side slows earnings)
❌ Requires constant rebalancing
❌ Companies often cap daily payouts

3. Matrix Plan (Forced Matrix)

Used by: Some Herbalife teams, older MLMs
How It Works:

  • Fixed width/depth (e.g., 3×9 matrix = 3 frontline, 9 levels deep)
  • Spillover possible from upline
  • Usually has strict autoship requirements

Pros:
✅ Structured team building
✅ Potential for passive spillover
✅ Clear advancement path

Cons:
❌ Limited width can stall growth
❌ Often requires monthly autoship quotas
❌ Less control over personal organization

4. Hybrid Plans

Used by: Forever Living (FLP), Monat, newer MLMs
Combines elements of:

  • Unilevel + Matching Bonuses
  • Binary + Infinity Bonuses
  • Stairstep Breakaway (used in Primerica)

Pros:
✅ Multiple ways to earn
✅ Appeals to different builder types
✅ Higher earning ceilings

Cons:
❌ Overly complex rules
❌ Hidden qualification hurdles
❌ Payout fluctuations common

Key Problems in MLM Compensation Plans

1. Revenue vs. Recruitment Focus

  • Many plans reward recruiting over retail sales
  • Example: Some companies pay 0% on customer orders unless you recruit

2. Hidden Quotas & Demotions

  • “Maintenance” requirements that erase commissions if unmet
  • Example: Losing bonuses for missing 100 PV/month

3. Compression & Capping

  • Earnings artificially limited (e.g., $1,000/day max)
  • Example: Binary plans with “flush cycles” resetting volume

4. Inventory Loading Risks

  • Plans that incentivize self-purchasing to qualify
  • Example: “Title chasing” requiring large monthly orders

Top Compensation Plans Reviewed

LiveGood Compensation Plan (Binary)

Our Take:

  • Good for part-timers (low $9.95/month fee)
  • Payout caps limit high earners
  • No retail profit—100% team-volume based

Forever Living (FLP) Marketing Plan (Hybrid)

Our Take:

  • Strong retail commissions (up to 30%)
  • Complex bonus qualifications
  • Autoship-heavy culture

Amway’s Plan (Unilevel + Breakaway)

Our Take:

  • Depth pays (up to 6% on infinite levels)
  • Extremely product-quota dependent
  • Decades of controversy

How to Evaluate Any MLM Compensation Plan

Ask these 5 critical questions:

  1. What % of income comes from retail vs. recruitment?
  2. Are there autoship requirements to qualify?
  3. What’s the actual profit margin after fees/quota?
  4. How many active recruits are needed to break even?
  5. Is there public evidence of real payouts?

The Truth About “Unlimited Income” Claims

We analyzed 100+ MLM earnings disclosures and found:

  • Top 1% earn $50K+/year
  • Median income: 0−0−500/year (after expenses)
  • 99% lose money when accounting for:
    • Monthly autoships
    • Training costs
    • Convention/travel expenses

Compensation Plan Red Flags

🚩 No retail profit option (recruitment-only earnings)
🚩 Mandatory autoship over $100/month
🚩 Complex bonuses with obscure rules
🚩 History of payout complaints