In Generation Compensation Plan also known as Gap Commission Plan or Repurchase Plan, the distributor motivates or encourages the downline members to promote the selling of the product and gets bonuses or incentives on achieving specific target. This plan is especially helpful for those companies that produces consumable items. Due to stiff competition in the market, the manufacturers sometimes need to give advertisement in televisions, newspapers, etc. to enhance the product selling margin. It is one of the fastest marketing based plan that promotes e-Commerce based business as the users are spread across the globe and with the increase in the referral system, the member network expands and it follows up an infinite structure.
"The Generation Compensation Plan is among the compensation plan that is purely based on product selling. The more the downline member sell, the more the distributor earns."