How does the Unilevel MLM Plan work?

ARM MLM Software
Geek Culture
Published in
3 min readJan 6, 2023

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A Unilevel compensation plan is a single-level plan with unlimited senior members. This scheme provides the maximum benefit from the joint efforts of distributors.

What is a Unilevel MLM Plan?

A Unilevel MLM plan is defined as a compensation plan that has only one business level and all sponsored distributors/members are placed directly in the first tier. This plan has no downsides and the distributor’s recruitment efforts will directly benefit him/her. It is a universal circuit and can be found in all compensation circuits.

Generally, the distributor sponsorship tree in any compensation plan is represented by a single-level plan. So, this plan is present in all MLM compensation plans and that is why it is called the “Universal Plan”.

Compensation in Unilevel MLM Plan

Unilevel bonuses and compensation are based on individual performance and team effort. Let’s take a look at what popular compensation looks like in this plan.

Direct Sponsorship Bonus:

Bonuses for attracting new members to a level tree.

Matching Bonuses:

The distributor receives a percentage of the sponsorship bonus paid by the downline members.

Quick Start Bonus:

After becoming a distributor in the Unilevel plan business you will get a bonus if you meet certain criteria within a certain period of time.

Rank up Bonus:

A bonus is received after a distributor is promoted to a higher position by fulfilling certain quality criteria set by the company.

Leadership Bonus:

A certain percentage of business turnovers are added to the pool. Distributors are subject to certain conditions to receive an amount from this pool. Once the distributor fulfills this condition, he will get a certain amount as a bonus.

Advantages/Benefits of a Unilevel MLM Program

Simple Chart: The structure of the plan is easy to understand for distributors as there are no complications.

Solid Income: Distributors earn solid income through individual ventures and groups.

Low compensation costs: Companies do not lose much money on compensation costs compared to other schemes.

Companies that want to follow a simple pay plan opt for a Unilevel MLM plan. There are no convergence problems such as propagation or other criteria, meaning the schema is easy to interpret.

However, MLM companies need to monitor their business properly from time to time to achieve steady progress. How can organizations achieve this? This is achieved by implementing data-driven MLM software that can easily manage all business processes.

Network marketing companies that choose this great program can use Unilevel MLM software to efficiently automate their marketing, prospecting, recruiting, training, and payment processes. You can learn more now with the free Unilevel MLM Software Demo!

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