What is the Unilevel MLM Plan ?

Unilevel Compensation Structure

Companies who want to follow a simple compensation plan choose a unilevel compensation plan. There are no complications like spillover or other criteria, basically, the plan is simple to explain.In unilevel plan, all the distributors in the same level would receive the same compensation ( commission ) and the commissions are generally paid out on a limited depth ( can be up to 5 to 7 levels deep). Some also consider this as a disadvantage however, as the unilevel plans are constrained by the limited depth of commission which inhibits deep sales organizations. The popular compensation in Unilevel Plan are :

Direct Referral Income :
The distributor adds 10 new members who chose the $500 enrollment package. T Income received for referring new members to the unilevel tree. Example: If a distributor sponsors members to the unilevel network then he/she will receive a sponsor bonus. he company has set 10% as a sponsor bonus. Distributor X receives $500 as sponsor bonus(10% of $5000 (10 x $500)).

Level Income :
Level Commission is the amount payable to the distributor based on the sales achieved by the downline members. This includes Level Referral income and Level Product Purchase Income

Sponsor Matching Income:
Distributor receives a percentage of sponsor bonus made by downline members. Example: Sponsor 1 referred users A,B,C,D and E into the network. User A later sponsors new members L,M,N to the network. Sponsor A also receives $7.5 as a matching bonus(5% of $150).

Advantages of unilevel plan

• Simple:
  One important thing with this MLM Unilevel Plan is its simplicity; so that the MLM networker or company can explain the Unilevel Plan easily to their new comers who are willing to join MLM business.
• Universal Plan :
  A plan suitable for all types of network marketing business models.