What You Need to Know

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The MLM comp plan (or compensation plan) is how independent distributors get paid for their own sales. It’s also how they get paid for the sales of distributors they’ve recruited into their organization.

There are numerous different MLM comp plans, and that can make create confusion for startup founders. Here are some of the most common types:

  • Binary
  • Spill over Binary
  • Monoline
  • Australian
  • Matrix
  • Unilevel
  • Board
  • Stair Step

Especially for startup companies looking for the right MLM comp plan, there are a few key principles you need to know. In reality, the same principles apply to existing companies who’ve hit problems with sales or growth.

The Big Picture

A great MLM comp plan is not enough to ensure your company’s success. There are multiple other factors that drive success in this industry. The best direct selling consultants excel at compensation plan design — and they will also keep reminding you of the bigger picture. They will help you create a total strategy for launch or growth, and the MLM comp plan will be integrated into that strategy.

This approach is what makes the Sheffield Group the most respected MLM comp plan consultancy in the direct selling industry. So before we look at the details, let’s take a moment to take a larger view.

The Drivers of MLM Success

As we’ve established, your MLM comp plan will not guarantee your company’s growth. Whether you’re a startup or an existing MLM, here are five factors that will have GREATER impact on your company’s future:

  1.  Your value proposition: Products that consumers love and want at the price you’ve set.
  2. Your culture: Values, attitudes and practices that attract and retain customers and distributors.
  3. Your tech: A fast, easy, and pleasant shopping experience at the front end and business management at the back end.
  4. Your brand: A simple, compelling brand, a strong social media presence, and exciting marketing tools.
  5. Your leadership: Inspiring, supportive, and honest leadership by the executive team.

If you get all these in place, the MLM comp can add to your success, but you won’t depend on it to thrive. Only Sheffield has the proven track record of delivering the best in MLM comp plan design PLUS all these other aspects of direct selling success.

How Sheffield Creates Your MLM Comp Plan

The Sheffield Group will review every aspect of your business with you to design your MLM comp plan. Here are just three of the factors that your consultants will consider:

  • Product — Low price or high price? Single purchase or recurring? Unique or commodity?
  • Market — A single audience or several? Primarily male, female or both? Affluent or not?
  • Competition — Other MLM companies with a similar product? Other MLM companies with a similar opportunity?

Based on this review, the team will select the optimum type of plan, or combination of types. Then the consultants will tailor the plan to meet the unique needs of your product and opportunity. At the same time, they will be addressing all the multiple factors that your success depends on, providing you with a detailed task list to manage every aspect of your launch or relaunch.

CALL US: 480-968-6199

Sheffield: Your MLM Comp Plan Experts

Founder Mike Sheffield is renowned as an industry leader in MLM comp plans. For over 30 years, his team has been delivering effective solutions to some of the most renowned companies in the direct selling industry.

Importantly, the Sheffield Group is equipped to address every aspect of your future success — either with our in-house consulting team, or with the support of our world-class network of specialist experts.


  • Concept and Product Review
  • Compensation Strategy
  • Marketing Strategy
  • Sales Pathways
  • Product Positioning
  • Distributor Recruitment Strategies
  • Financial Modeling
  • Culture Development


  • MLM Software
  • Branding and Design
  • Website and App Development
  • Online Positioning and Marketing
  • Social Media
  • Executive Recruitment
  • MLM Law

Your Next Step

Looking for the best possible MLM comp plan? Your next step is clear. Contact the Sheffield Group for a free initial consultation. To make an appointment, simply call us, or click the Message link below.

Let’s Talk About Your Business