A unilevel compensation plan is a single level mlm plan with an infinite number of front-line members. This strategy guarantees that distributors’ collaborative efforts provide the most possible advantage. Unilevel MLM software is used by network marketing organisations using a unilevel mlm compensation plan to successfully automate their marketing, prospecting, recruitment, training, and payout operations.
What exactly is a Unilevel MLM Plan?
A unilevel MLM compensation plan is one with only one business level, and all sponsored members of a distributor are placed straight in the first level.
There is no overflow, and a distributor’s efforts in recruiting benefit him or her directly. It is a universal plan, and it may be found in all compensation plans.
In most compensation plans, a distributor’s sponsorship tree is represented by a unilevel plan. As a result, the plan may be found in all MLM compensation programmes and is referred to as a ‘universal plan.’
A unilevel compensation plan is chosen by companies who desire to follow a straightforward compensation plan. There are no complexities such as spillover or other requirements, thus the design is straightforward.
MLM organisations, on the other hand, must track their business effectively in order to create consistent development from time to time. How can businesses do this? It is via using data-driven MLM software that can conveniently manage all company activities.
What is the structure of the Unilevel MLM plan?
The plan, as the name implies, is “uni” level, which means it has only one company level. Unlike other plans that have numerous levels for member placement, under the unilevel plan, all sales recommendations (new members) produced by the sponsor are placed to the same company level, one by one.
Let’s use an example to make the concept clearer. Consider the case where ‘Distributor X’ joined the company and sponsored 5 additional members. These 5 members will be assigned to the same business level, i.e. level 1, which is why the plan is referred to as a ‘unilevel’ plan!
The most crucial feature of the unilevel plan is that it allows distributors to add an infinite number of members on a single level. As a result, a unilevel compensation plan is often known as a “one level plan.” There is no ‘width’ restriction in new sales or recruitment, which enhances a sponsor’s remuneration. The sponsor benefits immediately since the sponsored members are put on the same level.
What happens to Distributor X’s network’s new sales?
Assume ‘distributor1’ from ‘X’ recruits new members. These fresh referrals are assigned to distributor1. This level is added to all members introduced by this distributor. As a result, the strategy compensates a distributor to the greatest extent possible for his or her efforts. The strategy appears to be,
Aside from direct remuneration, alternative compensations are offered up to 5-10 business levels. In this example, distributor X benefits from the company’s downline recruiting up to 5-10 levels.
This is how a unilevel tree is constructed!
When a distributor purchases an enrollment package, he or she becomes a member of the unilevel mlm plan. After enrolling, the user is designated as a ‘distributor,’ and their name is added to the genealogical tree under the sponsorship.The distributor now has a new place on the tree underneath the sponsor called a downline.
Compensation system with many levels
As previously stated, according to corporate standards, a distributor’s eligibility for unilevel remuneration is restricted to 5-10 business levels. The commission payout varies depending on the business level. As an example,
Level 1: 10% of total sales volume (direct bonus)
Level 2: 5% of total sales volume
Level 3: 4% of total sales volume
Level 4: 3% of total sales volume
Level 5: 2% of total sales volume
Level 6: 1% of total sales volume
Network marketing businesses may incorporate criteria such as a distributor earning just 200 percent of the registration cost as compensation, dependent on rank, and so on.
Unilevel, like the binary reward model, encourages distributors to be active by motivating group members. Because there is no spillover mechanism, remuneration is lower than in other compensation systems.
Advantages and disadvantages of a unilevel MLM strategy
- Simple plan: Because there are no complications, the strategy is simple for distributors to grasp.
- Solid revenue: Distributors will have a solid earning potential from both their own efforts and the work of the team.
- Less compensation overflow: Companies will not lose as much money as compensations as they would with other programmes.
- A universal strategy is one that is appropriate for all forms of network marketing company strategies.
