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Unilevel and Matrix Compensation Plans are the two leading compensation plans that come under modern Multi-Level Marketing or MLM Strategies. Both MLM Plans help to succeed in this increasingly competitive environment.
The Unilevel Compensation plan is one of the oldest and well-established compensation plans in the Network Marketing industry.
As the name indicates, the Unilevel MLM Plan permits you to sponsor only one line of distributors, so everyone you sponsor is on your front (i.e no spillover). There’s no width limit on this plan and the commissions usually paid out at a specified level depth.
The purpose of this compensation plan is to recruit as many members of the team first and then line them even. In this plan, the depth is limited but you can build as wide as you want. This limitation in-depth inspires distributors to build wide. The primary feature of a Unilevel compensation plan is the payment of a level commission to all qualifying distributors. In MLM plans, one of the oldest compensation plans, the stairstep Breakaway Plan starts like a Unilevel MLM plan.
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The Matrix MLM Compensation Plan is also referred to as a Forced Matrix Plan. This MLM plan is based on a compensation structure that consists of a certain width and depth. The basic structure of the Matrix compensation plan is identified by the ‘width * depth’ of the matrix.
The distinct feature of a matrix plan is its limited width. Unlike other MLM compensation plans, matrix restricts the number of distributors you can sponsor on your first level, usually to less than five. The most commonly used matrix MLM plans are 4 x 7, 5 x 7, 3 x 9 and 2×12. Like this plan, also the design of Board Matrix is a 2 x 2 Matrix that is also known as 2 x 2 Matrix Cycle Plan.
Matrix Plan is popular for its advanced ability to spillover. This is the unique feature of a matrix plan that will help you to motivate your downline distributors to sponsor more into their downline also and ultimately benefits you.
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Unilevel MLM plan is known as an unlimited width plan whereas Matrix MLM plan is a forced matrix based plan.
Unilevel is very easy to implement when compared to matrix plan as it involves only one frontline downline distribution for all the distributors whereas in Matrix plan, the downline distribution based on fixed width*depth.
No spillover of downlines in the uni-level plan whereas there is spillover in the Matrix plan based on width and depth parameters.
MLM bonuses offered in the Unilevel MLM plan are less when compared to the Matrix MLM plan. Bonuses offered in the Unilevel MLM plan are Sponsor, Fast Start, and Level commission whereas bonuses offered in Matrix plan are sponsor, level, matching, position, forced matrix.
The downlines are expanded easily in the Unilevel plan as it is based on only one single frontline distribution downlines whereas the Matrix plan is limited to the width and depth of the plan.
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