Unilevel Compensation Plan
Unilevel PlanThe Unilevel plan has been around for many years and given its proven track record is still used by a number of network marketing companies today. The main benefit to this model is that is very easy to understand, however like all compensation plans, whilst there are some benefits there are also a number of setbacks that should also be considered.
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 (people they dont know) 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 compensation plan more appealing. Another advantage of modern day unilevel plans is that when distributors rank advance they are generally entitled to earn a higher commission rate.
This compensation model is generally best suited for those who have network marketing experience or those who are very confident in their ability to recruit a large number of frontline distributors. Like most compensation structures this model does offer the potential to earn a very high income if you are willing to put in the work. However as discussed elsewhere in this chapter we strongly encourage that you dont join a network marketing company based purely the compensation plan. In particular the products, the practicality of the business model and whether the company has a proven track record should also be considered.
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