MLM compensation plans – the Unilevel Plan
I have to admit that I hate talking about MLM compensation plans. I consider myself to be a numbers guy. I like math. I was good at math in school. I’m still good at math. I still hate to talk about them!
For some reason when it comes to MLM compensation plans my eyes glaze over. They are so boring. They are so meaningless. All of the MLM companies do the same thing. They show you how things will work in a “perfect world.” Every person on every level recruits exactly the same number of people.
Then they tell you that once it gets, however deep, you’ll be making $10,000, $20,000, $30,000 per month … or more. Yes, they all same that same thing. My question to you is this, is the compensation plan the best reason to base your decision to join a company or not to join?
Enough of the editorializing!
I’m here to explain one of the most popular MLM compensation plans out there. It is called the Unilevel plan.
What makes the Unilevel plan so special? Well, the fact that it isn’t special at all is what makes it special.
The Unilevel plan is just your everyday, run of the mill compensation plan. There aren’t any bells or whistles. It’s all pretty simple. I do believe that it is improperly named. More on that later.
The name comes from the fact that you can only recruit on one level. For some reason it seems to me that all MLM compensation plans are that same way. If you personally sponsor someone they are your recruit on that first level. They say that the Unilevel plan has unlimited width, but it is limited on the number of levels deep that you can get paid for.
I thought that you could recruit as many people as you want in most MLM compensation plans. I know that there are some plans that only have two legs and you build the legs as deep as you can. In most plans you can keep recruiting as many people as you like.
Most of the Unilevel plans will pay you to the depth that there are ranks. Let me try to explain that. Let’s say that your company has 7 different ranks that you advance to. Maybe you start out as a direct distributor then you move up to the silver level, then to the gold level, the platinum level, the pearl level is next, then ruby and lastly you get to the diamond level.
That’s a total of 7 ranks that you can achieve in this company. More than likely they will be willing to pay you down to 7 levels of depth.
Getting back to the name, Unilevel. It should be called Uniform not Unilevel. The percentages that the company pays out on each level of depth is the same for everyone in the company. In my example company there is a level called gold. A gold distributor will get paid down to the 3rd level. They might get paid 5% of the volume of the entire organization to the 3rd level. If there is someone above the gold distributor, like a ruby distributor, the ruby distributor will get paid that same 5% of the volume on that 3rd level. Of course a ruby distributor will get paid to the 6th level.
The simplicity comes from that fact. Everyone gets paid the same percentage at what ever level that they qualify for.
It’s basically a uniform compensation schedule.
The Unilevel plan works very well if you area a recruiting beast. The more people that you are able to bring into the business, the higher your potential income gets.
I’m reading back over my own article and my eyes are glazing over. I just can’t think of a way to make MLM compensation plans in the least bit interesting. None of it really matters, in my opinion.
Of course it does get worse, for me. There are several more MLM compensation plans that I will need to go over for my blog. Yay!
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