Unilevel MLM compensation plan is the most basic and easy to understand MLM compensation plan. In this Unilevel MLM compensation plan, any distributor can add as many suppliers to their network, and these suppliers will be on the front line. This is similar to a Forced Matrix payment plan, with the exception that with the Forced Matrix plan, each distributor can only push a limited number of suppliers as their front line. Almost all MLM companies nowadays use the Unilevel Plan as their basic plan and customize it to make it more attractive. The Unilevel MLM plan is always the most advanced and powerful in any MLM compensation plan.
One of the reasons why the MLM business is gaining popularity is because of the high compensations, that these compensation plans are providing to their respective distributors and suppliers in the MLM business. MLM compensation plans vary a lot from business to business. When it comes to build a MLM business, the compensation plan is vital because it is the plan that will determine the success of your company.
Structure and Working of Unilevel MLM Compensation Plan:
In a unilevel MLM plan, there is only one line of distribution. Every new member will be placed under to the person who recruited them. There is no spillover concept in this plan, like the binary MLM compensation plan. In a uni-level MLM compensation plan, each member can recruit as many people as they wants. Every member of their downline also has the ability to recruiting as many people as they like. This type of plan allows for a larger and more powerful member network. The number of recruits is endless, the network expands horizontally, and the level depth determines the commission.
A unilevel compensation plan is used by companies who desire to follow a straightforward compensation plan. There are no problems, such as spillover or other criteria, and the approach is straightforward.
The main concept behind this Unilevel MLM plan is its simplicity.. Because this plan is simple to follow, you will not need to constantly make attempts to learn more about it. This Unilevel MLM plan allows you to promote a single flow of distributors, as the title indicates. There is no restriction on the width of this plan. The main objective of this Unilevel plan is to recruit a large number of distributors and frontline network members and also encourage them to do the same, which is to recruit a large number of new members. In this Unilevel MLM compensation plan, the gained commission is only a formal amount that is obtained by a set volume. This plan is ideal for part-time workers who want to increase their income.
Compensation – Compensation in Unilevel MLM plans is calculated as a percentage of the overall company volume of a specific level (usually from 5 to 8 levels).
In a unilevel compensation MLM Plan, all distributors in the same level receive the same pay (commission), which is usually paid out in a limited depth (can be upto 5 to 8 levels deep).Three basic compensation methods can be used to improve the stability of a unilevel MLM compensation plan:
A distributor will receive a Sponsor Bonus or referral bonus for bringing new members into the network.
A part of the sponsor bonus earned by downline members goes to the distributor.
Level commissions are the commissions earned by distributors for sales made by their down-line members.
If there are successful people in the downline, compensation might be high. You’ll be able to benefit from larger residual profits and faster bonuses.