The Unilevel MLM comprises three types of compensation schemes to increase the stability and keep the team on its toes.
It is paid as an encouragement to the sponsors or distributors to promote business and recruit new members to their downline.
It is the predetermined amount payable per new recruit. This bonus provided a starter benefit for enrolling new member. To qualify for this bonus, a member has to achieve a target.
The amount payable to the distributor from the sales achieved by the downline members is called the level commission. The unilevel plan has an unlimited direct downline in the first level and each of those members can have their own unlimited downline members. Hence, unilevel plan members can earn huge income.
Dividend from the directly sponsored members:
First level will be 25 % of business volume, ie. 25% of 1000 $ = 250$
In the second level, it will be 10 % business volume, i.e 10 % of 1000 = $100.
In third level, it will be 5% of business volume ,i.e 5% of 1000 = 50$.
In fourth level, it will be 2.5 % of the business volume , ie, 2.5 % of 1000 = 25$.
Therefore a total of 425 $ will be compensated from that business network at that point of time.