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Dynamic compression is a method of distributing commission to members in the MLM business plans. Understand how the method works, its advantages, disadvantages and alternatives available to this method.
MLM business plans are constantly evolving. Compression, a technique, specific to MLM businesses, refers to a method that keeps inactive and non qualified distributors from being a part of the payouts in the level commission plan. This method has been effectively put to use and brings about fairness in the entire process of an MLM business plan.
Dynamic compression is a variant of standard compression which is more complex than the standard method. In a standard compression method, the commission amount in not paid fully but dynamic compression provides a different take on it. It becomes applicable to the distributors who are in a premium position with four or five levels of distributors under them.