As we all know that the MLM business or network marketing business is a captivating business which follows certain plans to offer the commission package to the members joined in the MLM business structure. Though there are many MLM plans available in the MLM industry, Unilevel MLM plan is the plan which follows the simple structure and very easy to understand when compared to all other MLM plans. So, How does Unilevel MLM work? As the name Unilevel, it implies that the structure consists of downlines of a particular member in one single frontline.
In this article, we will look into the workings of the Unilevel MLM plan and how to choose the MLM software with the best customization and integrations options to customize the plan as per your requirements.
What is the Unilevel MLM Plan?
Unilevel MLM plan is the easiest and the unlimited width MLM plan that will enable you to refer the downlines or the distributors in one single front line and there is no spillover in this MLM plan. Since there is no limitation, you can build unlimited width down the line.
It is almost similar to a forced matrix compensation plan wherein forced matrix the distributors can only have a certain number of downlines in their frontline, it means there is a spillover and the same is not present in the Unilevel MLM plan.
Unilevel MLM Software
Unilevel MLM software is the MLM software application that manages this MLM plan to handle the income and compensation to be paid out to the downlines. This MLM software keeps track of all the MLM activities of the organization to easily calculate the Unilevel MLM plan calculations.
The Structure of a Unilevel MLM plan
Unilevel MLM plan structure is very simple to understand. Here each distributor can sponsor unlimited downlines in their frontline. The downlines or the distributors at the same level will be paid the same commission and usually, the commission is restricted to a certain level of depth (Maybe up to 4th to 7th level deep).
The main target of the Unilevel Plan is to increase the width of the frontline by recruiting a large number of downlines in the frontline.
Here in this plan, rewards such as level commissions, incentives, and sales commissions are offered when a certain level of depth is achieved and the for the sale happened at that particular level.
Consider the above example. Here A sponsored B, C, D, E and it can be unlimited in A’s frontline. Similarly, distributors B, C, D, E can sponsor as many distributors or downlines in their frontline.
In the Unilevel plan, there is no spillover and so all the distributors can have all the downlines in their frontline.
The more downlines they sponsor, the commission earned will be more.
Compensation in Unilevel MLM Plan
The compensation structure is usually planned in such a way that the payout is offered only between the specified level depth ( usually 4 to 7 levels). It is offered to each distributor for the respective downlines efforts at the specified level.
A certain percentage of business volume is at the specific levels and the decision from the MLM organization.
For example, consider 10 levels of Unilevel plan for a distributor. From 4th level to 7th level, the fraction of downline effort goes out as commission to the distributor.
The percentage could be 25 % of business volume (BV) at 4th level, 10% of BV at 5th level, 5% of BV at 6th level, 2.5% BV at 7th level. At 8th level, the downline effort is not for the commission from the distributor at the primary level.
Try out our Unilevel MLM Calculator to work out your compensation in your MLM business.
Various Bonus Plans in Unilevel MLM
- Sponsor Bonus
Sponsor Bonus is to motivate the distributors to increase the depth by recruiting more downlines in Unilevel structure.
- Fast Start Bonus
Fast Start Bonus is the bonus for the new recruit or new client to the Unilevel MLM. It is for any distributor for sale by anew recruit.
- Level Commissions
In the Unilevel compensation, the commission for the downline efforts and the percentage share of the business volume comes from the MLM organization.
Advantages of Unilevel MLM Compensation
- It is very simple and easy to understand so it mostly adapted by all the MLM organizations.
- As it is very easy to implement, it is the most preferred MLM plan by any MLM organization
- No spillover, so anyone can sponsor any number of distributors and thus there is more commission.
- All are equal at the same level and thus the same commission amount goes out to them
- As there is a limitation in-depth, it will encourage all the distributors to widen the network
- Customization and integration of the bonuses are very easy due to its simple structure.
Unilevel MLM Plan and Binary MLM Plan are two of the most popular and simplest among the MLM compensation plans. Here is a comparison of Unilevel vs Binary MLM Compensation Plan.
Hope in this article, you will be able to find the workings of the Unilevel MLM Plan.
Wisely choose customized software available in the industry to implement this Unilevel MLM Plan in your business.
Try the Free MLM software Demo before implementing the software into your MLM plan.