The Plan is based on purchase BV/PV Personal Value (Point Value)/ Business Volume. The Differential plan is a direct selling compensation plan that runs on the difference of the commission between the sponsor and the members. A company decides maximum allowed percentage be distributed among the members. PV are the points that you have to earn for achieving your bonus. BV is the price that the company will pay you.
Also, the commissions depend upon the difference between the existing members and newly added members PV percentage and so it is called as “Differential Plan." In this plan, a distributor receives the difference between the amounts for which he himself qualifies and the amount for which his first level distributor qualifies. So each member gets a difference between maximum PV percentage he can get and percentage PVs which are already distributed in down line.
This plan is more beneficial for companies who are dependent on product selling as well as on the re-purchase of products from existing distributors or franchise. A Differential plan is extremely predictable and has the strongest potential.
Differential Plan is known as the long-term plan in the MLM industry. As it is a long term-plan so it is comparatively less risky plan in MLM business. Most of the reputed direct selling company like Amway, Herbalife etc. uses the differential MLM plan.
Advantages of Differential MLM Plan
- A person can sponsor the unlimited number of a distributor in his down line.
- As there is no concept of a spill in the differential plan, so all direct are added directly to the network of the sponsor.
- The sponsor will get paid from the business for any of his directs. Also, you get paid for unlimited depth in the network.
- Differential Plan is a long-term plan so the risk factor is very much less.
- Different Types of PV/BV’s in Differential Plan.
Admire Foxigen Software;s has an expert team of consultants who are ready to suggest the best Differential plan for the company and individual who want to start MLM business and earn huge profit. The development team in Admire Foxigen has developed Differential plan for various satisfied MLM companies and successive providing the support to run their MLM business smoothly