Uni-Level MLM Plan is defined as a plan with only one business level, and all the sponsored members of a distributor are placed directly in the first level. There is no spill-over, and the efforts made by a distributor on recruitment are directly beneficial to them.
WHAT IS MULTI-LEVEL MARKETING?
Multi-Level Marketing is a distribution model companies use to get their product to consumers. Instead of directly offering their products to consumers online or retail stores, they use sales representatives to distribute and sell their products.
HOW UNI-LEVEL MLM PLAN WORKS?
As its name says, a Uni-Level is a type of level commission. The pay structure is based on the number of levels of distributors a person has below them. Qualifying for payment, though, usually depends on a person’s rank. Most companies ask distributors to meet specific requirements to move up in position, like having a certain amount in group sales volume during a commission run. As distributors earn higher ranks, they can be paid on more of their downline levels.
The Uni-Level Plan is a Single Level Plan with unlimited members on the front-line. This plan ensures maximum benefit for the collective effort of distributors. Network Marketing Companies with the Uni-Level MLM Plan use Uni-Level MLM Plan to effectively automate their marketing, prospecting, recruiting, training, and pay out processes.
PROS AND CONS OF UNI-LEVEL MLM PLAN
- Pros of Uni-Level MLM Plan
- Simple plan: The plan is easy to understand for distributors as there involve no complexities.
- Solid income: Distributors will get substantial income potential from the individual efforts and the team.
- Compensation overflow: Companies won’t lose too much money as compensation compared to other plans.
- Universal plan: Uni-Level Plan is suitable for all types of network marketing business models.
- Flexibility: Another advantage Uni-Level have a flexible commission structure. Flexibility is a very positive quality that any distributors are free to build deep.
- Cons of Uni-Level MLM Plan
- Stacking: It’s a dishonest way to build an organization that takes commissions away from the distributor’s upline leaders and undermines the company pay out structure.
- Unstacked Network: In an unstacked downline, the distributor earns a 15% commission from the sales of her first-level distributors. If each of them generated $100 in sales, she’d get a $30 commission check for the run period.
- Stacked Network: The distributor has enrolled four distributors between them and the real recruits in the stacked downline, creating artificial layers. This way, the real commissions amplify as they make their way to her through the fake accounts, raising the earnings.
COMPENSATIONS OF UNI-LEVEL MLM PLAN
Compensations in Uni-Level are based on individual performance and group efforts. To earn a decent income, first, we must understand the bonuses offered by the plan. It is essential to have a benefit that gives value to your effort. Let’s see how popular compensations look like in a Uni-Level Plan.
- Direct Sponsor Bonus:
A direct sponsor bonus is a bonus received for referring new members to the Uni-Level tree.
- Matching Bonus:
The distributor receives a percentage of sponsor bonus made by downline members.
- Rank Advancement Bonus:
Bonus received once a distributor advances to higher ranks by achieving specific rank criteria set by the company.
- Leadership Bonus:
A certain percentage of business turnover will be added to a pool. There will be some criteria for distributors to become qualified to get an amount from this pool. Once the distributor meets this criterion, they will receive a certain amount as a bonus.
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