The unilevel and binary MLM plans are two of the most popular compensation plans implemented by network marketing companies today. Prospects are often attracted to these plans due to their simplicity and huge earning potential. The networks of these compensation plans can also be easily managed using MLM software. Here we will take a detailed look into both these popular plans.
Unilevel MLM Plan
This is one of the easiest MLM plans to understand. In a Unilevel MLM plan , the distributor is free to recruit as many members as they want to and all of them will be positioned in their front line. The same compensations are paid up to a fixed level to all the members at the same level, depending on the company policy.
Members receive commissions up to 5 to 7 levels deep. Try out the Unilevel MLM Calculator to know more about compensations in the unilevel plan.
Bonuses in Unilevel MLM Plan
Members who are a part of a Unilevel MLM network will get the following commissions.
Sponsor Bonus
For recruiting new members into the network, a distributor will earn a bonus known as a Sponsor Bonus or referral bonus.
Level commissions
The commission attained by the distributors for the sales done by their downline members is termed level commissions.
Benefits of Unilevel MLM Plan
Keen to know how the Unilevel MLM Plan compares against the Matrix compensation plan?
Easy to understand
Solid income potential
Minimal compensation overflow
Suited for all types of networks
Binary MLM Plan
One of the most widely used MLM plans in the world, the Binary MLM plan consists of two legs, namely the left leg (Power Leg) and right leg (Profit leg). Depending on the availability of positions, new members can be added on the left or the right leg.
Each member in the binary network is responsible for recruiting two other members and placing them on the two legs in their downline. If they recruit more than two members, they will be placed in the next available position in the left leg (power leg). This would lead all members in the up-line to share the profits of sales generated by that downline member, irrespective of who recruited them.This practice, called spillover, is commonly implemented by Binary MLM companies.
Calculate the compensations you would earn from a Binary MLM Plan with our Binary MLM calculator.
Leverage the more sophisticated Binary MLM Software to automate your binary MLM business activities.
Bonuses in Binary MLM Plan
A distributor in a Binary Network will get the following commissions.
Sponsor Bonus
A sponsor bonus, also known as a referral bonus, is paid to a recruiter when he/she recruits a new member to the network.
Matching bonus
When the legs of a binary MLM network are balanced in terms of sales volume or member volume with the introduction of a new member, then the distributor will earn a matching bonus.
Benefits of Binary MLM Plan
Add members to unlimited levels
More encouragement for teamwork
Rapid growth opportunities
Spillover is possible
Unilevel vs Binary MLM Plan – Comparison
member volume in the legs increases the complexity of the Binary MLM Plan.
Plan while this is not possible in the Unilevel MLM plan.
Binary MLM Plan.
plan, it is necessary to match the number of members in the left and right leg.
the downline due to the spillover concept. But, in the unilevel MLM plan, strong leadership
skills can only influence down-line members to recruit more members.
the Unilevel MLM Plan.
It’s advisable to try the MLM Software Demo of both plans to understand the working of these two compensation plans.
Conclusion
The binary MLM plan and Unilevel MLM Plan come with their own set of advantages and disadvantages. Here we have taken an in-depth look at both the popular compensation plans. It is up to the MLM company to decide on which one to opt for, considering their products, business policies, and targets.
