Unilevel vs Binary MLM Compensation Plan-mlm software tamilnadu
MLM
Compensation Plan decides how and when distributors will get
compensation for the sales they generated. Some common MLM
Compensation Plans are Binary, Unilevel, Matrix, Generation, Stair
Step, Gift/Donation, and Hybrid
MLM Plan.
In
this blog, we shall draw a comparison between binary MLM Plan and
Unilevel MLM Plan.
As
the depth of the MLM network increases, it becomes increasingly
difficult to manage the compensation and payouts. An MLM software can
help in managing this issue and the overall network quite
effectively.
Unilevel
MLM Plan:
Unilevel MLM Plan is an
unlimited width plan, that allows you to sponsor only one line of
distributors, so everyone you sponsor is on your frontline (i.e no
spillover). Unilevel
MLM plan is efficient for all kind of MLM organizations whether
they are small or big.
This
is one of the easiest MLM
plans to understand. In this Unilevel MLM plan, the distributor
is free to recruit as many members as he wants to and all of them
will be recruited in his front line. the same compensation (
commission) and the commissions are paid up to a fixed level to all
the members at the same level, depending on the company policy.
Members receive the commissions up to 5 to 7 levels deep.
The
marketer who works in a Unilevel MLM network will get the following
commissions.
Sponsor
bonus:
For
recruiting new members into the network, a distributor will earn a
bonus known as a Sponsor Bonus or referral bonus.
Level
commissions:
The
commission attained by the distributors for the sales done by their
downline members is termed as level commissions.
Try
out the Unilevel MLM Calculator and work out your compensation.
Binary
MLM Plan:
One
of the most widely used MLM plans in the world, Binary
MLM plan consists of two legs, namely the left leg (Power Leg)
and right leg (Profit leg). Depending on the availability of the
position each new member can be either on the left or the right leg
Each
member in the binary network is responsible for recruiting two other
members in their downline and placing them in the two legs in his
downline. If he recruits more than two members, then they will be
placed in the next available position in the left leg (power leg).
This would lead to all the members in the upline to share the profits
of the sale generated by that member, irrespective of who recruited
them. We named this concept as spillover
A
distributor in a Binary Network will get the following commissions.
Sponsor
bonus:
For
recruiting new members into the network, a distributor will earn a
bonus known as a Sponsor Bonus or referral bonus.
Matching
bonus:
When
a new member is introduced into the network, say a binary network,
and it will lead to balancing of the legs in terms of either the
sales volume and the member of volume, then that particular
distributor will earn a matching bonus.
Calculate
the compensations you would earn from a Binary MLM Plan with our
Binary MLM calculator.
Comparison-unilevel
vs binary mlm plan:
1. Pay:Unilevel MLM plan pays
up to a specific depth while binary MLM plan allows earning till
unlimited depth.
2. Implementation:Unilevel MLM
plan is quite straightforward and easy to implement. The mandatory
matching of the member volume in the legs leads to the complexity in
the implementation of Binary MLM Plan.
3.
Downline expansion:The concept of spillover leads to the rapid
expansion of the downline in Binary MLM Plan while this is not
possible in Unilevel MLM plan.
4.
Downline structure:The Unilevel MLM Plan has a quite simple downline
structure while it is not the case in Binary MLM Plan.
5.
Downline matching:Unilevel MLM Plan has no such concept of matching
downlines while in case of Binary MLM plan, it is necessary to match
the number of members in the left and right leg.
6.
Downline recruitment: In case of binary MLM Plan, there is a chance
that individual extent of a distributor can influence the addition of
new members in further down the downline to some extent due to the
spillover concept. This is not the case in case of Unilevel MLM plan,
where only a strong leadership skill can only influence the downline
members to recruit more members.
7.
Teamwork:Binary MLM Plan thrives on the teamwork of the entire
network while this does not influence the Unilevel MLM Plan.
Binary MLM plan, as well as
the Unilevel MLM Plan, comes with its own set of advantages and
disadvantages. It is up to the MLM company to decide on which one to
opt for, considering their products, business policies, and targets.
It’s good to try MLM
Software Demo by choosing both the plans and then one will be
able to understand the compensation plans.
Thanks for watching our
content to know more about our services.Kindly visit our website:
MLM Software Tamilnadu
26, 49th Avenue, Ashok nagar,
Chennai – 600083,
9840566115
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