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Unilevel MLM Plan – A Complete Analysis!

Unilevel MLM plan is among the oldest and simplest of MLM compensation plans. The Unilevel MLM Plan is an automated and sustainable MLM business model. It offers a suite of beneficial features and tools that propels the financial goals for a company. In the unilevel compensation plan, a person’s compensation is determined by the number of people under him or her in the chain.

In most cases, a person must achieve certain requirements before being paid in this structure. However, this also means that a person can be paid for more than one level down the line. A unilevel mlm plan is a compensation plan that has no downline spillover process. This plan is designed to motivate and engage group members. Compensations are less than other compensation plans. However, this plan has some benefits. Distributors can earn a fixed amount of money, but there is no spillover process.

How does the Unilevel MLM Plan work?

Consider a distributor ‘A’ who joined the business and sponsored five new members.All five members will be added to level 1, which also gives the ‘unlevel Plan its name.The Plan doesn’t set a limit for the number of distributors. Consider a plan where distributor A has sponsored the distributors A1, A2, A3, A4,A5, to his frontline. Distributors A1, A2, A3, A4,A5 are free to sponsor as many distributors as they like. There is no width limit for new recruits. The advantage is that this helps increase the compensation of a sponsor. The sponsor is also benefitted directly as the sponsored members are directly placed on the same level. Since the structure doesn’t contain spillover, compensations are less compared to other plans.

unilevel plan

Structure of unilevel mlm plan

A Unilevel MLM plan shares benefits and responsibilities equally among its members. The structure of the sub tree plays an important role in calculating the commissions. Unilevel MLM plan is one of the most popular of all the MLM compensation plans. The Plan is not complicated and easier to understand. The Unilevel MLM compensation plan has a single drop format that operates on a single downline concept, allowing each member to add one potential referral. There is no spillover in this Plan as the business multiplies or scales with more additions. Every person becomes the frontline as there is no bifurcation. The upline and the downline are both equally responsible for ensuring the balance of their downlines. The more members they add to their uplines, the more members they automatically place under their downlines.

The process in which each distributor earns a part of revenue from the sales of their downline. The Compensation plan has a structure where each distributor can sponsor as distributors as he/she may like, and all these distributors will be on his/her frontline. This may seem similar to the Forced matrix compensation plan; the significant difference between those two is that in the Forced Matrix plan, there is a limit in the distributors a sponsor can include in their frontline. The additional distributors will be placed further down under other distributors. This system is ideal for SMEs networking business and conveniences product sales in different categories.

The Unilevel MLM plan maintains an Infinite Front End and combined plans such as Hybrid + Unilevel MLM, Unilevel + Binary, Unilevel + Matrix, Unilevel + Stair Step etc. Unlimited depth is the highlight of Unilevel plan. As per the name Unilevel has one level,ie, If a distributor A sponsors 3 members into the network all three will be placed under this distributor. Unilevel plan is also unique as it has no spillover concept. In the above case all the members sponsored by distributor A are placed a under him and all the recruitments made by A directly benefits him.

Bonuses in unilevel plan

  • Sponsor Bonus: 

    This is the bonus received directly by the distributor for sponsoring a member to the unilevel plan.

  • Level commission: 

    Commission received by distributor from each level of unilevel plan , Normally Level commission is paid for the sales volume achieved in 1-10 th level and company will set the percentage for each level

  • Rank advancement bonus – Once a member completes the rank advancement criteria they achieve an advancement to the next rank. They also receive the rank advancement bonus here.
  • Leadership pool – The pool is created by the addition of percentage of business turnover, when somebody meets the requirements to receive this bonus they get the leadership pool bonus.
  • Fast start Bonus – Bonus received by the distributor if they meet some criteria set by the company in certain period of time.

Benefits of unilevel mlm plan

A Unilevel MLM plan rewards distributors for building wide and deep networks, allowing them to maximize their income. It also uses a flexible commission structure, so it works for big and small commissions. This type of compensation plan can be adapted to all network marketing business models, and is easy to understand and implement. A Unilevel Compensation plan is an easy way to introduce your business opportunity to new distributors. It also requires minimal personal volume, making it very attractive for part-time Network Marketers. It can also help you earn income faster than other compensation plans, such as the Matrix or Binary Compensation plans.

Limitations of unilevel mlm plan

A limitation of downline depth in a unilevel MLM plan is not a significant disadvantage. A typical unilevel plan is designed to reward distributors at the specified degree. In this case, the compensation is a percentage of the business volume. This structure is beneficial for building longer networks because it rewards the downline for their efforts. A limitation in downline depth in a unilevel MLM plan is often found in a compensation plan. In some plans, this limit is called spillover. This means that any recruiter who is signed after the downline’s maximum depth will continue to be paid. This spillover helps increase the volume of the weaker leg. This is often considered the primary advantage of this type of compensation plan, but it can also lead to significant losses in time, money, and work.

A Unilevel MLM plan is flexible and can be customised. The explanation process is also easier in unilevel plan. It can produce income faster than other compensation plans and is suitable for all network marketing business models. Unilevel plan is equally efficient for both newcomers and also someone who plans to run the business part-time

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