How ROI plan works ?
In ROI plan, distributors have to invest money based on their capacity and company will provide them returns based on the investment they have done. Company can either provide fixed amount of money or it can be certain percentage of the investment made by distributors on daily, weekly or monthly basis. ROI plan is basically a non-working plan as distributors have to invest one time and be eligible for returns for certain period. But many companies also introduce different structure as means to distribute commission for those distributors who wants to earn some income by referring this plan to other prospects.
For example, company is offering 4 packages for distributors to invest their money in. based on the package they chose the returns will be calculated. Kindly refer table below,
According to the table above, if distributors invest their money in normal package company will provide them 11% of invested money as returns on weekly basis for 11 months. Same goes for other packages as well.
ROI plan does not have any specific structure. There are many different structure used by many MLM companies to make ROI plan more attractive, like binary, matrix or level plan. This additional structure will help them make ROI plan into to working plan for those who wants to earn some business by promoting it.
Types of incomes in ROI Plan
Investment return income
Distributors will get certain percentage of the investment they made or fixed amount of money for the investment they have done in company as return bonus. For example, in our example once distributor has to invest 799/- RS in company and he will get 11% as returns for 11 months n weekly basis.
Direct Referral Bonus/ Direct Sponsor income
Direct Referral income encourages distributors to recruit new distributor in the downline and get benefited. How much commission they will get for recruiting new distributor in the network will be decided by the company.
Advantages of ROI Plan
This plan doesn’t have any specific structure so companies can make their own plan using different structure.
2. This plan is most suitable plan for beginners because of simplicity in concept.
Disadvantages of ROI Plan
It is not legal as per direct selling guidelines because it comes under money laundering scheme.