MLM businesses are built on specific commission structures (also known as compensation plans) that are based on their profitability goals. MLM businesses are built on the foundation of an MLM compensation plan. Multilevel marketing is well-known for its diverse compensation plans, each with its own set of characteristics

Compensations are the rewards for a sale from Personal Sales Volume (PSV) or Group Sales Volume (GSV) in an MLM business model, and marketing refers to the selling part (GSV). Compensation is usually given in the form of commissions or bonuses. PSV-based commissions and bonuses for GSV or group efforts are available.

Each network marketing plan and MLM compensation plan has its compensation structure. An MLM company, on the other hand, is more likely to use a hybrid compensation structure, in which multiple plans are used. As a result, the same commissions/bonuses can be found in various plans.