• Stairstep Breakaway plans This type of plan is characterized as having representatives who are     responsible for both personal and group sales volumes. Volume is created by recruiting and by     retailing product. Various discounts or rebates may be paid to group leaders and a group leader can be     any representative with one or more downline recruits. Once predefined personal and/or group     volumes are achieved, a representative moves up a commission level. This continues until the     representative's sales volume reaches the top commission level and "breaks away" from their upline.     From that point on, the new group is no longer considered part of his upline's group and the multi-level     compensation aspect ceases. The original upline usually continues to be compensated through     override commissions and other incentives.

• Unilevel plans This type of plan is often considered the simplest of compensation plans. Uni-Level     plans pay commissions primarily based on the number of levels a recipient is from the original     representative who is purchasing the product. Commissions are not based on title or rank achieved. By     qualifying with a minimum sales requirement, representatives earn unlimited commissions on a     limited number of levels of downline recruited representatives.

•  Matrix plans This type of plan is similar to a Uni-Level plan, except there is also a limited number of     representatives who can be placed on the first level. Recruits beyond the maximum number of first level     positions allowed are automatically placed in other downline (lower level) positions. Matrix plans often     have a maximum width and depth. When all positions in a representative's downline matrix are filled     (maximum width and depth is reached for all participants in a matrix), a new matrix may be started. Like     Uni-Level plans, representatives in a matrix earn unlimited commissions on limited levels of volume     with minimal sales quotas.

• Binary plans: A binary plan is a multilevel marketing compensation plan which allows distributors to     have only two front-line distributors. If a distributor sponsors more than two distributors, the excess are     placed at levels below the sponsoring distributor's front-line. This "spillover" is one of the most     attractive features to new distributors since they need only sponsor two distributors to participate in the     compensation plan. The primary limitation is that distributors must "balance" their two downline legs to     receive commissions. Balancing legs typically requires that the number of sales from one downline leg     constitute no more than a specified percentage of the distributor's total sales.

• Hybrid plans are compensation plans that are constructed using elements of more than one type of     compensation plan.