1. Single-Level Network Marketing
In this model, sales representatives earn income by directly selling products or providing services. These representatives earn commissions only from their own sales and do not recruit new representatives.
2. Multi-Level Marketing (MLM)
MLM is one of the most common types of direct sales. Representatives earn commissions from both their own sales and the sales of new representatives they recruit.
3. Matrix Plan
A matrix plan is a commission plan structured with a certain width and depth. For example, a 3x3 matrix means that each representative can make a maximum of 3 direct recruits and this process continues at each level.
4. Binomial Plan
This model is a structure where each representative has two legs and tries to keep these legs balanced. Reps should balance their legs and recruit from both legs to earn more commission.
5. Ladder (Unilevel) Plan
In the Ladder plan, each rep can make an unlimited number of direct recruits. However, earnings are usually earned from levels up to a certain depth.
6. Breakaway Plan
This plan allows reps to create their own independent groups when they reach a certain sales goal. New independent group leaders earn commissions from their own sales and the sales of their groups.
7. High Performance Plans
These types of plans offer special bonuses and rewards for top performing reps.