Unilevel Compensation Plan
The Unilevel plan has been around for some time, with a number of companies opting to use this model because it has proven to be successful and is generally easier to understand then the Forced Matrix and Stair Step Breakaway Plans. Just like all compensation plans, although there are some benefits, there are also a number of setbacks.
Unilevel, as the name suggests, only enables you to sponsor one line of distributors, therefore everyone you sponsor is on your frontline. There are no width limitations to this plan (ie there is no limit to the amount of people you can sponsor in your frontline) and commissions are normally paid out on a limited depth (common plans that we have reviewed pay commissions between 5 and 7 levels deep). Therefore, the common goal of this plan is to recruit a large number of frontline distributors and then encourage them to do the same.
To earn a commission using this structure there is normally only a minimal amount of personal volume that is required, which essentially makes it easier for part-timers to earn an income. Although it tends to be easier to earn a commission using this compensation structure, when comparing it to other plans, the structure itself restricts the total amount of each commission you can earn (i.e. although it is easier to earn commissions you do not tend to earn as much).
One of the main disadvantages of the plan is that every distributor you sponsor becomes crossline to all of your other frontline distributors and therefore must work in competition with the others. This can present numerous challenges for the newcomer who attempts to recruit friends and family into their business, as in essence, they will be working in competition to one another. An ever increasing frontline also requires continual training and having to manage large numbers of people.
The unilevel plan does, however, have a few advantages, mainly the fact that it is easy to explain. Generally, the more distributors you recruit, the greater your commission cheque. This makes it attractive to your experienced network markers, particularly those that are gun recruiters and have the ability to develop management and training systems for their growing downline.
Given the competition created between frontline distributors within this compensation structure, it is common practice for distributors within this plan to target their cold market as a way to build their organisation. This may include developing lead generation systems and the use of internet leads.
Most modern network marketing companies using this model have made slight changes to its basic structure to make it more attractive, and allow some partial teamwork. Additionally, most unilevel plans now also include a number of bonuses to make their plan more attractive and generally as distributors rank advances they are entitled to a higher commission rate.
We strongly recommend this structure to people who are very confident in building a large downline. Using this model you will have the chance of wreaking incredible commission cheques, but always keep in mine that you should pick a network marketing company solely based on the compensation plan the company has to offer.
Learn more about the Forced Matrix pay plan.
Learn more about the Stair-Step Breakaway pay plan.
Learn more about the Binary Pay Plan.
Unilevel Plan back to Understanding Compensation Plans.

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