Marketing plan MLM. How not to get lost in 3 pines

Network Marketing Business Plan - rules that define the bonus distribution scheme to the company's distributors. It defines the strategy for promoting products and services in the market.

By understanding the marketing tactics of their network mentor, partners build their own business. Knowledge of the basics and details allows each MLM partner to effectively create an action plan.

Considering the variety of MLM companies, each one has a unique marketing plan. They build it based on the main types:

- Linear, also known as UniLevel

- Matrix, also known as Matrix

- StairStep, also known as StairStep

- Mixed, i.e. combining elements of the first 3 types

Linear MLM Plan (unilevel) is not limited in width, all distributors are equal and purchase products at a single price. Partner's activity is divided into generations, which determine the volume of bonuses. The linear MLM structure plan is effective for any MLM companies. It is the most strategically flexible. The structure of such a MLM plan is stable, operates for a long time, but develops slowly.

Advantages: stable structure, operating for a long time.

Disadvantages: slow development.

Example of companies with linear marketing:

Tiens (Tianshi) have provided for 11 qualification levels (5 basic and 6 honorary). Partners at basic levels benefit from the conditions of an accumulation system. At the honorary levels, partners receive from 8% to 15% and gain access to 7 bonus programs.

Each partner of LR Health & Beauty Systems has the right to purchase the company's products at a special wholesale price (40% below retail). LR has developed a total of 7 bonus programs. The main one depends on the turnover of a specific partner and allows them to receive rewards ranging from 3% to 21%.

Matrix (staircase plan, matrix) limits the number of distributors you can sponsor on the first level. All participants are placed in a single matrix. New contributions from participants are placed in "free spaces," evenly filling the levels. Income is earned only when the matrix is "filled" and a certain minimum turnover is achieved in each cell. Typically, companies with this marketing plan are champions in terms of development speed, but they exist for a short time - 1-3 years.

Advantages: champion in terms of development speed.

Disadvantages: exist for a short time.

Example of companies with matrix marketing:

A typical example of such a matrix is the now-closed in 2013 Money Formula. Upon registration and a contribution ranging from $25 to $2000, a partner entered a three-level, 7-seat matrix. Reward was given upon connecting the third partner. Connecting subsequent partners yielded triple profit. The company existed for a year.

4 partner levels are provided in Emgoldex. Partner relationships start with a one-time investment of $150 in the company. By inviting 15 people into the structure and reaching the top level, the partner receives a bonus - a gold bar.

Stair-step (classic, stairstep) - participants receive bonuses based on the turnover of the structure, their rank, and the positions of those they sponsored. The rank of a specific distributor is determined based on personal sales volume. These are the "steps" in this type of marketing plans. If someone from the first generation reaches the same rank as the sponsor, the sponsor stops receiving commissions from the volumes of the distributor's organization that was on the lower step. Companies with such a marketing plan have an average growth rate, but this plan allows for receiving a variety of bonuses at different levels. This motivates partners.

Advantages: variety of bonuses depending on levels and ranks.

Cons: average development pace.

Example of companies with step marketing:

At Edelstar (a division of Faberlic), 6 types of bonus rewards have been developed. The minimum level - consultant, receives 3% of sales premiums. The maximum - directors, receive 21%.

Biosea provides up to 9 bonus programs. The number of programs increases as the partnership develops in the company. Newcomers in the system receive 3% bonuses, directors - 23%.

Binary (binary, bi-marketing) implies only two positions in the first line. If you invite a third person, they will be considered your personally invited, but at the same time, they will drop down a level into an empty cell under one of your distributors. This plan represents a structure where only two branches are built, and leader payouts come from the total turnover of the structure, regardless of its depth.

To qualify and receive bonuses, the entire team must meet certain conditions regarding sales volume, for example, make 20 sales (10 in each branch). It is important to maintain a balance between branches because if you have 4 sales in one and none in the other, there will be no financial reward. Usually, branches are referred to as strong and weak, and to receive a fee, their balance must be maintained.

Advantages: need to support only two teams, and the people invited by your mentor become part of your structure.

Disadvantages: difficulty in implementing a reliable plan in its pure form.

Often under binaries hide ordinary fraudulent schemes and "hype projects" that are banal financial pyramids. To avoid a quick collapse, the life of a binary scheme can be extended in several ways:

- Introduce restrictions on the number of binary levels. By closing the allowable number of levels, spillover occurs, and the leader begins to develop the structure from scratch, while continuing to receive a certain reward from the existing closed structure.

- Combine with other marketing. Practically, no stable working structure uses any specific type of marketing plan in its "pure" form.

Mixed (hybrid), i.e. combining elements from the first 3 types. Having a foundation of linear, matrix, and stair-step marketing plans allows you to construct hybrids that will include the advantages and exclude the disadvantages of the "basic" types of MP. However, developing such an MP requires deep knowledge of basic types, thorough elaboration, and testing.

Advantages: includes the advantages and excludes the disadvantages of "basic" types of marketing.

Disadvantages: development requires deep knowledge of basic types, thorough elaboration, and testing.

Example of companies with mixed marketing:

At the core of Youngevity are three plans. Linear is embodied in 8 generations (+ "infinity" bonus from the entire depth of the organization), matrix in rank advancement (according to the "soft 3x3 matrix" rule), and stair-step in an accumulation bonus system. This company is an example of an optimally blended and balanced development strategy.

In one of the first MLM companies, Amway, linearity is embodied in partner levels. The matrix is formed by levels and encourages people to attract new partners. The stair-step plan is observed in assigning ranks and granting corresponding bonuses. The minimum reward for distributors is 3% of personal and 3% of group turnover. The maximum is 9% of personal and 9% of group turnover.

In most cases, developing a marketing plan requires an individual approach. There is no doubt that you can earn by being part of a company with any strategic direction. It is important to realize what benefits the creator of the marketing plan offers to their partners for the company's development and clearly formulate them in the marketing presentation.