A hybrid compensation plan refers to one that falls under none of the standard plans (such as unilevel, binary or matrix). Usually it is based on one or more of these standard plans — either a mixture of them, or just one with a significant change. A hybrid plan is generally chosen in an attempt to increase the compensation for all distributors while providing enough working capital for the company to continue to run with a comfortable margin of profits. A hybrid type plan should generally provide more opportunities for members to be compensated, given it has more benefits than any traditional compensation plan. The downside is that it is more complex, and members of the company need to understand all of the possibilities for payments in order to make the most of their work. Funds tend to be funneled into one or two possible payouts based on traditional plans. An example of a hybrid plan is a unilevel plan variant, with the majority of payment being offered to the top two levels of the distributor hierarchy.


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