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.

You can also check out another comparison between Binary vs Generation MLM Compensation Plan

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

Pay

Unilevel MLM plan pays up to a specific depth while binary MLM plan has earning potential for unlimited depth.

Unilevel MLM plan is pretty straightforward in implementation. The mandatory matching of the
member volume in the legs increases the complexity of the Binary MLM Plan.

The concept of spillover leads to the rapid expansion of the down-line in the Binary MLM
Plan while this is not possible in the Unilevel MLM plan.

The Unilevel MLM Plan has a quite simple down-line structure while it is not the case in
Binary MLM Plan.

Unilevel MLM Plan has no such concept of matching down-lines while in the case of Binary MLM
plan, it is necessary to match the number of members in the left and right leg.

In the binary MLM Plan, a distributor can influence the addition of new members further down
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.

Binary MLM Plan thrives on the teamwork of the entire network while this does not influence
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.