It is simple and purely a product selling plan mostly in the direct consumer products or in other words we can say that a daily use products. It can be define as a profit sharing business as when a members sales a product the share or the volume to be distributed towards the up-lines, this is one reason it called as MLM Generation Plan.
Apparently, the competition is increasing in the market. Therefore the companies need to do advertisement of products through medium like television, news papers in order to survive in the competition. But The Generation Plan gives an opportunity to all these companies in which there is no need to expense for advertisements..
A generation is a whole volume from upline to downline (this includes people with the same and different ranks). The technical working principle of this MLM Plan can be described using the following example:
Assume 16 levels, consisting of only 4 generations. The amount you can get will be more in the case of the first generation and will be getting reduced for the following generations respectively. Let's make it more clear, if you pay 10% of your very first generation, it will only be 6% on the second, 4% on the third generation, and 2% on the fourth.