The Unilevel Compensation plan is one of the oldest and most established types of compensation plans in the Network Marketing industry. It's proven track record makes it still used even today by many companies. Like any other compensation plan though, the Unilevel Compensation plan does have its benefits and disadvantages.
How Does the Unilevel Compensation Plan Work?
As the name suggests, you are able to only sponsor one line of distributors / associates. This means that everyone you sponsor is one of your frontline distributors / associates. Unlike a Matrix Compensation plan, there is no width restriction to the number of frontline distributors / associates you can have when working a Unilevel Compensation plan. Commissions are paid out on a limited depth of distributors / associates within your organization. From the many plans that were reviewed, the commissions were usually paid on 5 to 7 levels deep. Thus the main goal in a Unilevel Compensation plan it sponsor large numbers or frontline distributors / associates and then encourage them to do the same.
Advantages to the Unilevel Compensation Plan
To start to earn commissions with the Unilevel Compensation plan usually only requires a minimal amount of personal volume. This is a very attractive feature to those that are starting their Network Marketing business on a part-time basis. They can start their business, and very quickly see an income starting to come in. In many cases faster than they would with either a Binary Compensation Plan or Matrix Compensation Plan.