Unilevel vs Matrix compensation plan-mlm software tamilnadu
What is MLM?
A
multi-level marketing business(MLM) or network marketing is a tiered,
commission-based business.
Here,
sales associates not only sell the product themselves but if other
sales representatives join the company beneath a sales associate, the
sales associates also earn a commission every sale the new sales
representative makes!
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.
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.
Disadvantages of Unilevel
Compensation Plan
-
No Spillover
-
Not Much possibility of rapid downline development
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.
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.
Disadvantages of Matrix
Compensation Plan
-
The width and depth of the plan coupled with the variable pay scale can leave many prospects confused.
Unilevel Vs Matrix MLM
Compensation Plan – A comparison
Pay:
Matrix
MLM Plan pays more in comparison to the Unilevel MLM Plan.
Implementation:
Since
the Unilevel MLM
plan involves the uni-level distribution of members,
implementation is quite easier than the Matrix MLM plan.
Downline expansion:
Downline
expansion is easier in case of a Unilevel MLM plan due to the
uni-level layout.
Downline structure:
The
down line structure of the Unilevel MLM plan is different from that
of Matrix MLM
plan.
Downline recruitment:
In
the case of the Unilevel MLM plan, a sponsor cannot influence the
downline recruitment since the concept is that of uni-level.
Downline Matching:
Downline
matching is not essential in case of Unilevel MLM plan whereas it is
essential in the case of Matrix
MLM plan.
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