A Gift or Donation MLM plan (sometimes called a 'help plan') structures payouts as peer-to-peer gifts or donations between members rather than as commissions on a product sale. Members are matched to give/receive contributions, and the software automates the matching, tracking, and payout logging. Like ROI plans, this structure carries significant legal risk in most jurisdictions since it functions like a money-circulation scheme without an underlying product.
Pure gift/donation structures with no underlying product are generally illegal under India's Prize Chits and Money Circulation Schemes Banning Act. Please consult a qualified lawyer before considering this plan type - we flag this risk to every client who asks about it.
Pairing genuine product sales with a peer-contribution structure changes the legal analysis, but the specifics depend entirely on your model - legal review is essential.
We're transparent about the risk upfront and require clients to confirm they've had legal review before we proceed - we won't build a plan without that conversation happening first.
Matching logic (who contributes to whom, and in what order) is configurable, with full logging for every transaction.
A Repurchase/Auto-ship plan or a standard product-linked Unilevel/Binary structure achieves similar community-building goals with a genuine product underlying every transaction, which significantly reduces legal risk.
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