Board MLM Resources
Board MLM is a multi-level marketing compensation plan in which members are placed on small boards – most often a 2x2 board with seven positions. When a board is full it splits into two, the member at the top cycles out with a bonus and moves to the next, higher board. This page collects our resources – the plan, the software and the demo – and explains how board MLM compares with the other common compensation plans.
Resources on this site
How board MLM works
The board is the centerpiece of the plan. In a 2x2 board there is one member in the top position, two on the second level and four on the third level. New distributors join through their sponsor's board and fill the open positions level by level. When the fourth position on the bottom level is filled, the board cycles:
- the member at the top earns the board bonus set in the compensation plan;
- the board splits into two new boards, and the two members of the second level each move up to the top position of one of them;
- the member who cycled out enters the next board, where the cycle repeats with a higher bonus.
Because each board is small, a member can complete a cycle with the help of the whole team rather than only their own sponsoring. Some companies use a 3x3 board, several board levels or a re-entry rule, so the details always come from the company's own plan. The board MLM plan page explains the plan in more detail, and the matrix plan calculator shows what a board pays per cycle.
Board MLM compared with other compensation plans
Each compensation plan uses a different structure and pays at a different time. The table gives the short version; the sections below explain each plan.
| Plan | Structure | How commission is paid |
|---|---|---|
| Board plan | Small boards (2x2, 3x3) that split when full | A bonus each time a board cycles |
| Binary | Two legs per member | On the volume of the weaker leg |
| Unilevel | Unlimited width, limited depth | A percentage per level, down to a fixed level |
| Generation | Levels grouped by rank into generations | A percentage per generation |
| Monoline | One single line in joining order | Bonuses as the line grows below the member |
Binary MLM Plan
Every member has two legs, left and right. New members are placed in one of the two legs, and commissions are usually paid on the sales volume of the weaker leg, matched against the stronger one. Spillover from the upline helps both legs grow.
Unilevel MLM Plan
A member can sponsor any number of people on the first level, so the structure is wide instead of deep. Commissions are paid on the sales of a fixed number of levels below the member, with a different percentage per level.
Generation MLM Plan
Commissions are paid by generations instead of levels. A new generation starts where a downline distributor reaches the same rank as the upline, which rewards leaders who develop other leaders.
Monoline MLM Plan
All members sit in one single line in the order they join. Every new member is placed below the previous one, so each member benefits from everyone who joins after them, and bonuses are paid as the line grows.
What board plan software should do
Running a board plan by hand stops working once more than a few boards are active, so the plan needs a system that applies the rules the same way every time. Good board plan MLM software should offer these features:
- automatic placement of new members and automatic board splits and cycles;
- bonus calculation for every cycle, credited to the member's e-wallet, with payouts through your payment gateways;
- a view of every board, position and level for the member and the admin;
- reports on sales, members, cycles and income for the company;
- room to combine the board with a unilevel, binary or other plan as the network marketing business grows.
Our board plan MLM software does all of this and can be tried first in a free demo.
Frequently asked questions
What is board MLM?
Board MLM is a multi-level marketing compensation plan in which members are placed on small boards. When a board is full it splits into two new boards, and the member at the top cycles out, earns the board bonus and moves to the next board.
Is a board plan the same as a matrix plan?
It is a variant of it. The board plan is also called the revolving matrix plan: it uses a small matrix, such as 2x2, that splits and cycles, while a classic forced matrix has a fixed width and depth and pays commissions per level.
How many positions does a 2x2 board have?
A 2x2 board has 7 positions: one on top, two on the second level and four on the third. The board cycles when the four positions on the bottom level are filled.
Can a board plan be combined with other compensation plans?
Yes. Many companies pay their main commissions through a unilevel or binary plan and add a board as a cycle bonus. Board plan MLM software can run the board and the other plan in the same system.
Is income in a board plan guaranteed?
No. Every board bonus depends on new members joining and on the sales behind them, so income differs from distributor to distributor. A plan should reward genuine product or service sales; in the USA the Federal Trade Commission publishes guidance on how MLM compensation and income claims are judged.
