Unilevel MLM Compensation Plan Review
Before you make a decision about any company or make an investment in any business opportunity you should always do yourself a favor and take the time to do some necessary research first. Before you decide that any specific opportunity is right for you, seek out third party information, facts, and resources that will show you exactly what it is required of you to become a success in this industry.
Once you have decided that you are going to invest your time, energy, and resources into building a business realize that if you better understand the dynamics of the plan you are looking first you will then be better prepared to choose the right opportunity to invest your lives in.
Consequently it should be clear to you that MLM Compensation Plans should be subjected to the same evaluation process that any MLM opportunity, its leadership, products, and marketing system go through before you decide a specific opportunity is right for you.
Pay plans are clearly an important part of each opportunity but is still only one facet of a complete opportunity. It becomes your responsibility to look at the whole package, including but not limited to: Compensation Plan, Product Line, Automated Tools and Strategy, Market Share, Leadership, Start-Up Costs, Mentoring, and your personal level of Skill and Preparation.
Are Unilevel MLM Compensation Plans proven and sound?
The Unilevel MLM Compensation Plan has been around for many years and has a solid proven track record in the industry. Governmental regulators in North America generally prefer the Unilevel MLM Compensation Plan to other plans.
Considered to be a true grandfather among MLM Plans over 70 percent of the companies started in the past decade are using Unilevel plans, and that percentage appears to be growing. The popularity and longevity of the Unilevel model may be undisputed, however, like all compensation plans there are both benefits and also drawbacks to be considered before choosing any Unilevel opportunity.
Are Unilevel MLM Compensation Plans a Pyramid Scheme?
The Unilevel Plan is not a Pyramid Scheme.
Pyramids are illegal recruiting games where people get money for enrolling people into the pyramid. There is rarely a legitimate product or service for sale. Participants also do not receive payment unless they successfully recruit a number of recruits into the pyramid.
MLM Compensation Plans are not set up to be a recruiting scam where people are only joining for the opportunity to make money off of signing up new members.
In MLM Plans there must be a legitimate product or service for distributors to market. The recruitment of new enrollees does not qualify as a product or service. Commissions are earned from the personal sales and team sales of products or services and there is a minimum amount of personal sales required to earn that commission. This and other safeguards protect both consumer and company from legality issues pertaining to legitimacy of MLM pay plans.
The basic concepts of Unilevel MLM Compensation Plans include:
- Unilevel MLM Compensation Plans are not a one level only plan as the name might suggest. The plan usually allows 3 to 9 levels of depth as well as allowing for unlimited first level sponsored width.
- Unilevel plans usually have varying payment rates for differing depth levels (common plans that we have reviewed pay commissions between 5 and 7 levels deep). and also include one or a number of special bonuses as compensation.
- Special Compensation features of the plan usually include: roll-ups, compression, and/or infinity bonuses (all of these terms refer to the process of product volume rolling to the next qualified distributor in the line when one distributor in the chain may not qualify to earn it.)
- Unilevel, as the name suggests, only allows you to sponsor one front line of distributors, therefore everyone you sponsor is on your frontline.
- Therefore, the common goal of this plan is to recruit a large 攜號轉台優惠 number of frontline distributors and then encourage them to do the same.
Advantages of Unilevel MLM Compensation Plans
- Unilevel plans are relatively easy for companies to administer, and for distributors to explain to potential recruits.
- This compensation structure is more attractive to full-timers, and experienced network markers with the ability to recruit large numbers of distributors, and develop management and training systems for their growing downline.
- There is normally only a minimal amount of personal volume that is required to qualify for commission payments. Lower personal volume requirements than say for some other type plans makes it easier for most distributors to stay active.
- The Unilevel plan allows unlimited sponsoring on the first level. You can go as wide as you desire creating unlimited potential income.
- The Unilevel MLM Compensation Plan doesn’t create as much incentive for “inventory loading” or the stockpiling of product that other plans may.
Disadvantages of Unilevel MLM Compensation Plans
- The depth of levels they pay commissions on limits Unilevel plans. This restriction inhibits the creation of deep sales organizations.
- If you have a very strong builder/producer far down in your organization you may not see all the benefits and commission from them.
- As front line width grows and a sponsor’s attention is spent on recruiting, it may cause them to be “thin” in their support of newly enrolled distributors.
- When distributors are taught to go wide, it is easy to forget about the needs of their downline distributors, who are several generations removed. This can become a team management and organizational obstacle for many aspiring marketers.
- 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 other members of your organization.
- An ever-increasing frontline requires continual training of new distributors and having to manage new distributor needs.
- Track records show that most companies that start with Unilevel plans eventually adapt them to look more like Stairstep Breakaway plans overtime. Be aware of the potential for this plan to evolve over time.
- Although it tends to be easier to earn commissions with a Unilevel Plan, you do not tend to earn as much as you would with other type plans. This trade off may or may not be suitable depending on the needs of the distributor.
- Full-time experienced “heavy-hitters” can become discouraged by how long it takes to reach the big money when using a Unilevel MLM Compensation Plan.