Unilevel VS Matrix Compensation Plan

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.

Unilevel Compensation Plan

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.

Make your Unilevel MLM Software Plan calculation easier with our handy Unilevel MLM Plan Calculator

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.
• Unilevel plan naturally encourages building a network that’s both deep and wide. This sets up higher earning potentials and maximizes the income of distributors because a greater number of people are making sales.
• Unilevel MLM plan has a flexible commission structure. Distributors have the freedom to create networks deep, wide, or any other way they like.
• The plan is flexible in size. It works perfectly for big and small commissions. Companies can use them in different places in their compensation plan.
• The unilevel MLM plan is easier to understand and explain. This makes it a lot more successful. New members can easily be attracted to the plan because of its simplicity.
• Unilevel MLM plan encourages sales.

Disadvantages of Unilevel Compensation Plan

• No Spillover
• Not Much possibility of rapid downline development
• It 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 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.

Now, Matrix Plan commission calculation became easy with Matrix MLM Plan Calculator

Advantages of Matrix Compensation Plan

• Spillover
• 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.
• The matrix MLM plan is very simple to explain and to understand for new recruits.
• Matrix MLM plan is easy to manage and there are only minimal risks involved because of its restriction in width.
• Members can start making money from day one of the business as the Matrix MLM plan grows fast. As the number of members begins increasing, so does your income.
• In the Matrix MLM plan, there are different ways to generate income such as bonuses and attractive rewards.

Disadvantages of Matrix Compensation Plan

• The width and depth of the plan coupled with the variable pay scale can leave many prospects confused.

Comparison Between Unilevel And Matrix MLM Plans

#1. MLM Structure:

Unilevel MLM plan is known as an unlimited width plan whereas Matrix MLM plan is a forced matrix based plan.

#2. MLM Implementation

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.

#3. Downline Distribution

No spillover of downlines in the uni-level plan whereas there is spillover in the Matrix plan based on width and depth parameters.

#4. MLM Bonus

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.

#5. Downline Expansion

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. 

Have a quick glance over this video for more 

Infinite MLM Software supports all types of compensation plan along with free MLM Software Demo.