A Generation Plan is a network marketing compensation structure that primarily emphasizes product sales rather than recruitment. It's also known as a Gap Commission Plan or Repurchase Plan.

How it Works:

• Generations: Downlines are divided into different levels called generations.
• Decreasing Commissions: Commission rates decrease as you move down the generations. For example, you might earn 10% from the first generation, 7% from the second, and so on.
• Product Focus: The plan incentivizes members to focus on product sales and helping their downline achieve sales targets.
• Gap Commissions: Commissions are often based on the "gap" between a member's sales and their required purchase volume.

Visual Example:

Advantages of Generation Plans:

• Product Emphasis: The plan promotes a strong focus on product sales.
• Multiple Income Streams:You can earn from multiple generations of your downline.
• Fair Compensation:The decreasing commission structure can provide a fair compensation model.

Disadvantages of Generation Plans:

• Dependence on Product Sales: Income is heavily reliant on consistent product sales.
• Lower Commissions in Later Generations: Earnings can diminish in deeper levels of the downline.