Skip to main content
MLM Settings

Plan simulator

Model how fast the network could grow and what the compensation plan would cost, before you change a rule in MLM Settings.

Simulate a member payout Back to settings

Assumptions

Starting values are today's settings

members

Everyone in the network today.

people

Prospects each member brings to the table.

%

Share of prospects who join and become active.

$

What one member spends in a month.

% of sales

The most the company pays out (current setting 40%).

% of volume

Taken from volume before commissions (current setting 3%).

Projected month

After ten levels of recruiting, with every member buying once a month

Network size49,210
Monthly network volume$4,920,996
Total commission liability$1,155,774
Level commissions$1,008,144
Leadership pool$147,630
Payout ratio23.5%

Payout ratio against the cap

Total liability as a share of network volume, next to the cap you set

Payout ratio23.5%
Payout cap40.0%
Share of the cap used58.7%
Inside the cap100% = the cap
Over the capfills only when payouts pass it
  • Room under the cap each month$812,625

How to read it. A share of the cap up to 100% means the plan is within budget. Above 100% the red bar fills and the room under the cap turns negative: the plan is over budget. To bring it back, pay fewer levels, lower a rate in Commission Management or raise the cap in MLM Settings.

Projected network by level

Members on each level below today's network, and the commission rate paid there

Projected members, relative size and commission rate for each of the ten levels
LevelMembersRelative sizeRate paid
Level 1 9,634 15%
Level 2 7,225 9%
Level 3 5,419 6%
Level 4 4,064 4%
Level 5 3,048 3%
Level 6 2,286 2%
Level 7 1,715 1%
Level 8 1,286 0%
Level 9 964 0%
Level 10 723 0%

What changes if

Three fixed scenarios with the same 12,845 starting members, 40% cap and 3% pool. Only the growth and plan depth differ.

Conservative

Slow and steady

Within budget
Recruits per member
2
Conversion
20%
Levels paid
5
Average order
$90
  • Network size21,407
  • Monthly volume$1,926,669
  • Commission liability$211,084
  • Payout ratio11.0%
  • Share of the 40% cap27.4%

$559,584 a month of room left under the cap.

Base

The defaults above

Within budget
Recruits per member
3
Conversion
25%
Levels paid
7
Average order
$100
  • Network size49,210
  • Monthly volume$4,920,996
  • Commission liability$1,155,774
  • Payout ratio23.5%
  • Share of the 40% cap58.7%

$812,625 a month of room left under the cap.

Aggressive

Fast recruiting, deeper plan

Over budget
Recruits per member
5
Conversion
26%
Levels paid
10
Average order
$110
  • Network size724,527
  • Monthly volume$79,697,934
  • Commission liability$33,084,811
  • Payout ratio41.5%
  • Share of the 40% cap103.8%

Payouts reach 103.8% of the cap, about $1,205,638 a month above it.

How the model works

Plain rules, so the numbers can be checked by hand

  • Each starting member brings in recruits per member x conversion new members, and each of those does the same, for ten levels.
  • Every member buys the average order value once a month. Network volume counts the starting members and everyone below them.
  • An order pays commission up the line to as many levels as levels paid allows, so a young network pays less per sale than a deep one.
  • Rates by level: 15%, 9%, 6%, 4%, 3%, 2% and 1% for levels 1 to 7 (the Platinum column of Unilevel Standard). Levels 8 to 10 are assumed to pay 1%.
  • The leadership pool is taken from network volume on top of level commissions. Total liability is both together.