Unilevel and Matrix Compensation Plans are the two leading compensation plans comes under the modern Multi-Level Marketing or MLM Strategies. These both MLM Plans help to succeed in this increasingly competitive environment.
Unilevel Compensation Plan
The Unilevel Compensation plan is one of the oldest and well-established compensation plan 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. In unilevel plan, each user can enroll unlimited number downline (frontline) under his downline.
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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Advantages of Unilevel Compensation Plan
- Unilevel MLM plan is the easiest, MLM structure.
- To start to earn commissions with the Unilevel Compensation plan usually only requires the least amount of personal volume.
- Faster Bonus and solid residual income
- All distributors are paid the same percentage of commission on their downline sales.
- Easy for distributors to explain to their prospects.
Disadvantages of Unilevel Compensation Plan
- No Spillover
- Not Much possibility of rapid downline development
- Can be difficult for many people to make a substantial income with this style of a compensation plan.
Matrix Compensation Plan
The Matrix MLM Compensation Plan is also referred as 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. In matrix plan each user can enroll limited number downline (frontline) under his downline.
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 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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Advantages of Matrix Compensation Plan
- Once you have filled your frontline distributors, you can then shift your focus to developing your frontline distributors into leaders.
- Members have the flexibility to adjust their organizations the way they set fit.
Disadvantages of Matrix Compensation Plan
- The width and depth of the plan coupled with the variable pay scale can leave many prospects confused.
Infinite MLM Software supports all types of compensation plan along with free MLM Software Demo.