What is Helping Plan ?
In Multi-Level marketing, helping plan has become one of the most popular plans nowadays because companies can earn great deal of money in very short period of time. It has different names like gifting plan or donation plan which is used by many MLM companies at national as well as international levels. But according to the guidelines for direct selling company in India, helping plan is declared illegal because it falls under money laundering scheme.
How Helping plan works ?
Helping plan is basically works on concept of “Giving and Receiving”. This concept has different names in different companies like give help and receive help or provide help and accept help. Helping plan doesn’t have a static structure, it is basically n*n matrix plan in which company will decide width and depth of matrix. Company also use binary plan, matrix plan or level plan as compensation plan for commission distribution.
In Helping plan, company doesn’t have any specific products that distributors have to purchase. They provide activation key or activation pin through which distributors have to activate their ID. The purchase amount of activation pin or activation key is roughly around 10 to 20 percentage of the provide help amount. After activating their ID they have to send the help to whoever company suggests.
Types of Income in Helping Plan
Helping Income
Distributors will get double amount of help they have done to other distributors as helping income. For example, distributors will get 2000/- RS as a helping income if they provided help of 1000/- at the joining.
Direct Referral Bonus/ Direct Sponsor income
The reason behind introducing this income is to motivate distributors to introduce/refer new distributors in network and get benefited by that. For example company has decided to give 10% of direct sales made by distributors as direct referral bonus.
Level Income
Distributors will get some percentage of sales made by their downlines on particular level as a level income. For example company has decided to give distributors 7% of total sales made on their 1st level, 5% of total sales made on their 2nd level and so on for definite level decided by company.
- Rewards
Fixed Rewards :
Company announces bonus for those distributors who complete predefined task set by company in fixed period of time. For example, if distributors bring business worth of 2 lacs within month of joining, company will give additional cash bonus of 5000/- RS as rewards for completing the task.
Flexible Rewards :
Such rewards are not predefined by company and keeps on changing from time to time. For example, company is giving additional 2% of level income to those distributors who have sponsored more than 15 direct sponsors in a month.
Advantages of Helping Plan
- This plan is preferable for MLM companies because it can help them earn good money in very short period of time.
- Company can design it as non-working plan as well where distributors can earn commission even if they are not working.
Disadvantages of Helping Plan
- According to Indian guidelines for direct selling, helping plan is considered to be illegal plan.