Level commission
A defined percentage of each downline transaction, with a separate rate for every level.
Level Income Plan MLM Software
A level income plan is an MLM compensation structure that pays members a fixed percentage or amount on the activity of each level in their downline, up to a set depth. MLM.ERP level income MLM software lets you define level percentages, qualification rules and income caps, then distributes commissions across all eligible uplines instantly when a sale or activation occurs.
- Structure
- Unlimited width, fixed depth
- Payout basis
- Percentage per downline level
- Income types
- 4 built in
Who is the Level Income Plan best for?
New and small businesses that want a transparent plan members can understand in one sentence.
How it works
The Level Income plan in 5 steps
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1
Admin sets the number of paid levels and a commission value for each level.
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2
A member sponsors anyone they like; there is no width restriction.
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3
When a downline member buys or activates, the engine walks up the sponsor chain.
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4
Each eligible upline receives the percentage set for that level.
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5
Unqualified uplines are skipped or compressed, depending on your rules.
Income types
How distributors earn in a Level Income plan
Every income type below is configurable in MLM.ERP: rates, levels, caps and qualification rules.
Direct sponsor income
Usually the highest-rate level, paid to the personal sponsor of the buyer.
Level completion reward
A bonus when a level reaches a target number of active members, if configured.
Repurchase level income
Level-wise commission on repeat product orders, often at different rates from joining.
Worked example
See the numbers in action
Suppose level rates are set at 10%, 5%, 3%, 2% and 1% for five levels. A member at level 4 in your downline buys a package worth 200 points. The direct sponsor (level 1 from the buyer) earns 20 points, the next upline 10 points, then 6, then 4 points, and the fifth upline earns 2 points. Your own share depends on your position in that chain.
Illustrative figures only. Actual results depend on your plan configuration and genuine sales activity. No earnings are implied.
Inside MLM.ERP
Run your Level Income plan from one admin panel
Configure income types, rates and levels, watch the network grow and approve payouts from the same dashboard. This is a real MLM.ERP screen.
Unlimited level settings
Configure any number of levels with individual percentages or fixed values.
Qualification rules
Require a minimum personal volume or direct referrals before a member earns from deeper levels.
Instant distribution
Commissions reach every eligible upline’s e-wallet the moment a transaction completes.
Income capping
Set daily, monthly or lifetime income limits per member or per package.
Auto TDS deduction
Deduct TDS automatically on each payout and generate statements members can download.
Level-wise reports
See members, volume and income per level for any member or date range.
Pros & considerations
Is the Level Income plan right for you?
Why companies choose it
- One of the simplest plans to explain at a presentation.
- No width limit, so members can sponsor freely.
- Payouts are easy for members and auditors to verify.
- Works well for both joining packages and product repurchases.
What to design carefully
- Deep level depth with high rates can exceed product margins; model total payout first.
- Without qualification rules, inactive members still earn, which can demotivate active builders.
- If income comes mainly from joining packages rather than retail sales, the plan may face regulatory questions.
Compare
Level Income vs Unilevel vs Generation
| Attribute | Level Income Plan | Unilevel Plan | Generation Plan |
|---|---|---|---|
| Structure | Unlimited width, fixed depth | One unlimited front line | Rank-based generations |
| Payout basis | Percentage per downline level | Monthly product volume | Group volume per generation |
| Main income | Level commission | Unilevel commission | Generation override |
| Best for | New and small businesses that want a transparent plan members can understand in one sentence. | Consumer-product brands with regular repeat purchases, such as wellness, personal care or household goods. | Established direct-selling companies with a rank ladder that want to reward leaders for developing other leaders. |
See every plan side by side in the full comparison table.
FAQ
Level Income plan: common questions
Can't find your answer? Our team can review your plan design in a free demo.
Ask a questionHow is level income calculated in MLM?
The software looks at the sponsor chain above the buyer. Each upline receives the percentage set for their level relative to the buyer, for example 10% at level 1 and 5% at level 2. Qualification rules and caps are checked before the credit reaches the wallet.
How many levels should a level income plan have?
There is no single right answer. Many companies use between 5 and 15 levels, with rates that fall as depth increases. The key is that total payout across all levels stays within your product margin. MLM.ERP includes reports that help you test different level settings against real volume.
What is the difference between a level plan and a unilevel plan?
They are closely related. Both allow unlimited width and pay by depth. Unilevel plans typically focus on monthly product volume with rank-based level unlocks and compression, while a level income plan often pays on joining or activation. MLM.ERP can run either model or both together.
Can I change level percentages after launch?
Yes. In MLM.ERP, level percentages, depth and qualification rules are edited from the admin panel and take effect from the date you choose. Past payouts stay unchanged, and the change is logged so you can show members exactly when and why the plan was updated.
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Free live demo
See a Level Income Plan running with your rules
Tell us about your products, plan and markets. A product specialist will show you the admin panel, member back office and mobile app configured the way you work, then send a written proposal.