In a Uni-level compensation plan, you build levels, not legs. So, every recruit you sponsor will fall on your forehead. Your first level is everyone you personally sponsored. When your reps sponsor someone, that person becomes part of your second level, and so forth. There is no width limit on this plan, and the commissions are usually paid out at a specified level depth.
The depth is decided
according to the compensation plan of the MLM company. There would also be no
spillover in this case, unlike other MLM plans. The main goal of the plan is to
recruit as many members as possible and line them evenly. Each consultant
recruits new members in the front line, introducing them at any width.
The Uni-level
Compensation plan is one of the oldest and most established types of
compensation plans in the MLM industry. It has a proven track record of success
which makes it still in use today by many companies.
Work?
In the Uni-level compensation plan, everyone you sponsor is one
of your frontline distributors/associates -direct line. In other words, you can
only sponsor one line of consultants/associates.
How it works: Let us consider
one example of the Uni-level compensation plan. Suppose a Consultant X joined
this Uni-level MLM plan and introduced new members (A, B, C, and Z); these
members will be placed on the first level of X. Everyone Consultant X sponsors
goes on his/her first level (see the figure below), and X can sponsor as many
as he/she wishes -unlimited width. The ellipsis shows unlimited width.
When A, B, C, Z, etc., sponsor consultants on their first levels, these become A’s second level; see the figure below.
Consultants A, B, C, and Z, form different legs of X. All the recruits of each of A, B, C, Z, etc., will be in the third level of X. The fourth level for X will be created when the people in the third level recruit other people. The genealogy continues in this manner, as shown in the fig below, but the MLM company sets the number of levels (i.e., the depth).
Unlike other MLM compensation plans, this is no spillover, and there are no limitations in the width of the plan. Hence, each member can add as many members as possible in his downline, thereby building a stronger and longer network downline.
The commission is normally
paid up to a limited depth that has been decided by the company.
The payment structure is regulated by insisting on a minimum
member volume to be required to earn a commission. Due to the simplicity of the
plan, it is extremely easy to understand.
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Suppose Consultant A (see the fig above), whom X sponsored, recruits
new members to the Uni-level Compensation Plan. These downlines of consultant A
are directly placed under his level, and it provides commission for his effort; this is called direct commission. However, there are commissions earned from
the new sales made by the downlines of X. Here X earns commission up to the 5th
to 10th levels deep, which is set by the MLM company.
Uni-level compensation may be provided for 5 to 10 levels
deep down the MLM plan structure, depending upon the MLM company preferences.
The commission varies depending upon the levels in the Uni-level
compensation plan.
15% of SV at level 1
7% of SV at level 2
4% of SV at level 3
3% of SV at level 4
2% of SV at level 5
1% of SV at level 6
MLM companies may set some compensation criteria like
consultants can earn only up to a certain percentage of the enrollment fee or
based on ranks, etc. Uni-level compensation plan motivates the group members
and makes them active.
Class
Rank
Furthermore, MLM companies may set some compensation
criteria that consultants meet and get promoted to another rank. Thus, there
could be different ranks, such as Bronze, Silver, Gold, and Platinum. To move
up in rank, most companies ask consultants to meet specific requirements, like
having a certain amount in group sales volume (GSV) during a commission run and
recruiting certain numbers of downlines. As consultants earn higher ranks, they
can be paid on more of their downline levels.
For example, let us imagine a hypothetical MLM company using Uni-level compensation with the following simple class ranks and criteria.
Let us assume that the MLM company has set the maximum depth to be 5 levels. Now see the following diagram.
Pros of Uni-level Compensation Plan
Like any other compensation plan, though, the Uni-level Compensation plan does have its.
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