compensation plan

Compensation Plan Basics Page 3

Upline Distributors

Your upline is just what the name indicates. The distributors / associates that started before your and have been sponsored above you in the total distributor / associate organization. Your support, guidance and mentorship should come from your upline. It obviously benefits them to see you succeed as they too will get paid on the volume that your organization generates.

Also in some compensation plans, such as the Binary Compensation Plan and Matrix Compensation Plan, you can personally benefit from your upline's sponsoring. In both the Stair Step Compensation Plan and Unilevel Compensation Plan, the sponsoring efforts of your upline will most likely not benefit you financially.

Downline Distributors

Your downline distributors / associates refers to those distributors / associates that started after you, and are in your organization. The could be sponsored into your organization by you, your upline or someone already in your organization. You are one of their upline distributors. You will benefit from your downline distributors as the volume that their Business Centers generate will, depending on the compensation plan, be included in your Business Center's volume, and thus contribute to your pay.

You will be encouraged to support your downline distributors to the best of you abilities. If you are new to the Network Marketing industry, you may not be able support them immediately and that is understandable. This is where having proper support and systems in place will allow you to develop as a leader so that you in turn can develop more leaders in your organization.


Crossline distributors / associates is the relationship that is formed between distributors / associates that have no financial influence on each other through the compensation plan. They are not a part of either distributor / associate's organization.

However having crossline relationships with other distributors / associates is very important as you build your own organization. There may be times when support is needed in a face-to-face manner, and having these crossline relationships can significantly benefit your organization. Especially when you organization is first starting out. You can also gain great amounts of synergy from working with other groups within your Network Marketing company. Ask your upline how this has benefited them and their organization.

Width and Depth

Compensation Plan Organization Width and Depth

The width and depth is one of the major characteristics that distinguishes the different compensation plans from each other.

The width refers to the maximum number of distributors / associates that you can personally sponsor directly below you. This is also known as your "frontline" distributors / associates.

The depth of the compensation plan refers to the number of levels deep that you will earn a commission on. The Network Marketing company will need to ensure that the money being generated is balanced. That is the distributors / associates are paid fairly while at the same time the company itself generates revenue and a profit for stainability.

An example of width and depth is shown below. This example is one of a Matrix Compensation Plan and you can clearly see the width and depth.

Matrix Compensation Plans are commonly written as an equation. Our example here is a (3 X 2) Matrix. This means that this compensation plan has a width of 3 distributors / associates and 2 levels deep. In other words, you have a maximum of 3 frontline distributors / associates, and you will collect commissions on 2 levels deep into your organization.

In other compensation plans such as the Stair Step and Unilevel, you will have unlimited width, and fixed depth, where as in the Binary Compensation plan you will have a fixed with, 2, and an unlimited depth.

More information on Compensation Plans, go to . . . Page 4 >>
*Examples in these materials are not to be interpreted as a promise or guarantee of earnings. Earning potential is entirely dependant on the person using the products, ideas, techniques and efforts put forth on Engineered Lifestyles. For our full earnings disclaimer click here.

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