International expansion requires direct sales companies to adjust their compensation frameworks. This often involves selecting between global and local MLM compensation models.
A global MLM compensation plan applies a consistent payout structure across markets. Though it presents legal and logistical challenges, its primary strength lies in its scalability, enabling smooth integration of new markets with minimal changes.
Conversely, a local MLM compensation plan adapts to regional conditions, complying with local laws and cultural expectations. These plans are easier to implement regionally and offer more flexibility for localization, though they may hinder rapid global scalability.
