A decentralized plan in the context of Multi-Level Marketing (MLM) refers to a compensation plan or structure where the earnings and commissions are distributed through multiple levels or tiers of distributors or participants in the MLM organization. MLM is a marketing strategy in which individuals, often called distributors or network marketers, earn income not only through their direct sales but also by recruiting new members into the organization and receiving commissions from the sales made by their downline (those they have recruited) and their downline’s downline.

In a decentralized MLM plan, each distributor has the potential to build and manage their own team of distributors, and the compensation structure allows for multiple levels of recruitment and earnings. This can create a hierarchical network where each level can earn a percentage or commission on the sales made by those they have directly recruited and by the distributors recruited by their recruits.