Generation plans can be tricky to understand and explain, especially for the new comer. They function similar to unilevel pay plans, except instead of levels, you are paid on generations. A Generation is all volume from you down to the next person in your downline who is the same or higher rank. The next generation is all volume from that person down to the next person your rank or higher, and so on. A generation is the whole volume from upline to downline (this includes people with the same and different ranks). Technical working principle of this MLM Plan can be described using the following example:

Assume 16 levels, consisting of only 4 generations. The amount you can get will be more in the case of first generation, and will be getting reduced for the following generations respectively. Lets make it more clear, if you are paid 10% on your very first generation, it will be only be 6% on the second, 4% on the third generation, and 2% on the fourth.