Unilevel Mlm Compensation Plan Review
Do yourself a favor; seek out third party information, facts, and resources that deal with exactly what it is going to take to be successful in this industry first, before you make a decision about any company or make an investment in any business opportunity including a Unilevel plan.
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You can also watch a YouTube Video of this at: Unilevel Compensation Plan
So… you are going to invest yourself, your time, energy, dreams, and resources into building a business. If as new distributors you better understand the dynamics of the pay plan you will be better able to choose the right opportunity to invest your lives in.
It has become increasingly clear to me that Mlm Compensation Plans should be subjected to the same evaluation process that any Mlm opportunity, its leadership, products, and marketing system go through before you make a decision about joining.
While the pay plan is clearly important, it is only one part of any MLM opportunity. It is your duty to look at the whole package, including but not limited to: Pay Plan, Products, Automated Tools, Market Size, Leadership, Start-Up Costs, Mentorship, and your personal level of Skill and Preparedness.
Are Unilevel Plans proven and sound?
Unilevel Compensation Plan
The Unilevel Plan has been around for many years and has a solid proven track record in the industry. Governmental regulators in North America generally prefer the Unilevel Mlm Compensation Plan to other plans.
Considered to be a true grandfather among Mlm Compensation Plans over 70 percent of the companies started in the past decade are using Unilevel plans, and that percentage appears to be growing. The popularity and longevity of the Unilevel model may be undisputed, however, like all compensation plans there are both benefits and also drawbacks to be considered before choosing a Unilevel plan opportunity.
Are Unilevel Mlm Compensation Plans a Pyramid Scheme?
Pyramid Schemes are illegal enterprises. Some Mlm Compensation Plans may look like a pyramid when they are filled up, but with legitimate pay plans the similarity ends right there.
You see, the Unilevel plan is not set up to be a recruiting game where people are only joining for the opportunity to make a lucrative payout off recruiting new members. The people joining Mlm pay plans have to be joining for a reason other than to just make money by recruiting. There must be a legitimate product or service for distributors to market. The recruitment of new enrollees does not qualify as a product or service. Payment for signing new people into the organization and for that only would be a pyramid scheme and that’s strictly illegal.
An easy way to spot a pyramid scheme is there is no legitimate product or service for sale. Another clue is there is no payout unless you successfully recruit a number of people into the pyramid. You’re paid on enrollee’s and generally there is no selling or marketing of any products or services necessary to receive payment.
The basic concepts of Unilevel Plans include:
- Unilevel Plans are not a one level only plan as the name might suggest. The plan usually allows 3 to 9 levels of depth as well as allowing for unlimited first level sponsored width.
- Unilevel plans usually have varying payment rates for differing depth levels (common plans that we have reviewed pay commissions between 5 and 7 levels deep). and also include one or a number of special bonuses as compensation.
- Special Compensation features of the plan usually include: roll-ups, compression, and/or infinity bonuses (all of these terms refer to the process of product volume rolling to the next qualified distributor in the line when one distributor in the chain may not qualify to earn it.)
- Unilevel, as the name suggests, only allows you to sponsor one front line of distributors, therefore everyone you sponsor is on your frontline.
- Therefore, the common goal of this plan is to recruit a large number of frontline distributors and then encourage them to do the same.
Advantages of Unilevel Plans
- Unilevel plans are relatively easy for companies to administer, and for distributors to explain to potential recruits.
- This compensation structure is more attractive to full-timers, and experienced network markers with the ability to recruit large numbers of distributors, and develop management and training systems for their growing downline.
- There is normally only a minimal amount of personal volume that is required to qualify for commission payments. Lower personal volume requirements than say for some other type plans makes it easier for most distributors to stay active.
- The Unilevel plan allows unlimited sponsoring on the first level. You can go as wide as you desire creating unlimited potential income.
- The Unilevel Mlm Compensation Plan doesn’t create as much incentive for “inventory loading” or the stockpiling of product that other plans may.
Disadvantages of Unilevel Mlm Compensation Plans
- The depth of levels they pay commissions on limits Unilevel plans. This restriction inhibits the creation of deep sales organizations.
- If you have a very strong builder/producer far down in your organization you may not see all the benefits and commission from them.
- As front line width grows and a sponsor’s attention is spent on recruiting, it may cause them to be “thin” in their support of newly enrolled distributors.
- When distributors are taught to go wide, it is easy to forget about the needs of their downline distributors, who are several generations removed. This can become a team management and organizational obstacle for many aspiring marketers.
- One of the main disadvantages of the plan is that every distributor you sponsor becomes crossline to all of your other frontline distributors and therefore must work in competition with the other members of your organization.
- An ever-increasing frontline requires continual training of new distributors and having to manage new distributor needs.
- Track records show that most companies that start with Unilevel plans eventually adapt them to look more like Stairstep Breakaway plans overtime. Be aware of the potential for this plan to evolve over time.
- Although it tends to be easier to earn commissions with a Unilevel Plan, you do not tend to earn as much as you would with other type plans. This trade off may or may not be suitable depending on the needs of the distributor.
- Full-time experienced “heavy-hitters” can become discouraged by how long it takes to reach the big money when using a Unilevel Mlm Compensation Plan.
What you need to know about Unilevel Mlm Compensation Plans to make them work?
When checking out a Uni-Level Program, be aware of the total amount paid out and where those payments are going in the compensation plan. There are different amounts being paid on different levels in different kinds of plans. If only small amounts are paid out on the first levels of a plan, and the real income is in the lower levels, are you the kind of marketer that this will work for? Do you stand a chance to recoup your monthly output if you are not yet capable of building depth?
Consequently if you find a plan that pays a lot up front in the first several levels but not at the deeper levels, does this suit your abilities, time, and style. Are you a part-timer looking for a few extra bucks or a full-timer looking to replace an income? Maybe you’re more ambitious still. What is your real chance of achieving your personal goals based on the kind of marketer you are, and the plan you are considering. Only you can decide if the plan you are considering will be a match for your personal needs.
Most plans pay between 35 and 45 percent of the company’s wholesale purchase volume, and about 30 percent of suggested retail volume. Look for a plan that divides the profits in your favor without going overboard. A plan that is overly “generous” to its distributors especially at the early levels in the pay plan can run itself into financial ruin. A balance that is healthy for both the company and the distributor is a necessary feature of any good plan that is going to last and provide a steady dependable long-term residual income.
The Unilevel Compensation Plan is in general best suited for those who have network marketing experience. It tends to favor those who are very confident in their ability to recruit a large number of frontline distributors. It also requires training systems and good management skills to assist and train your ever-widening front line of new distributors and create duplication in your teams.
Like most compensation structures this model does offer the potential to earn a very high income for those willing to acquire the knowledge, skills, tools, training, and systems necessary to succeed with a Unilevel Compensation Plan.
Aspects of Unilevel Mlm pay plans that you may not be aware of
Most modern network marketing companies using this model have made slight changes to the basic Unilevel Plan to increase its attractiveness to new distributors and to encourage and allow some partial teamwork. Most Modern Unilevel Plans also include a number of bonuses to sweeten the pot and make this older compensation plan more appealing to today’s modern Mlm Industry.
In the past “Big Gun” recruiters couldn’t make money as fast as they could with other compensation plans, nor could they earn as much. This tended to give the Unilevel Plan a bad reputation that hurt their popularity. However, recent revisions, improved rules, and enhancements to the basic Unilevel structure, have eliminated these weaknesses and the popularity of the Unilevel Mlm Compensation Plan has risen once again.
Unilevel plans now offer lucrative infinity bonuses and other forms of compression to bring the big money back into the plan. These bonuses have allowed top producers to draw income from deeper in the compensation plan than previously possible. Large payouts are being generated with Unilevel plans today, and it is considered by many to be among the most stable and lucrative pay plans in the industry.
How do Unilevel Plans pay you?
Unilevel Pay Plans pay out a moderate amount, or a percentage of the total sales volume of the first several levels in a person’s organization. The first one or couple layers of the plan, pay anywhere from one to, ten percent on these levels. The rest of the remaining percentage (out of 100 percent) is spread out and paid in any number of ways throughout a number of levels. Usually seven to nine levels deep.
The Newest companies use what is called Unilevel Compressed Plans. If a company decides to pay $0.50 of every dollar earned to distributors, it will not stop at a fixed depth level. This means that if distributors, who are too deep in the plan for you to get payment on normally, do not qualify for a commission payment, then the remaining commission will flow up levels in the plan to the next qualified person and the complete $0.50 will be paid out. This is called “dynamic compression.” Commissions not earned by downline members roll up to distributor leaders instead of becoming profits by default to the company.
The Unilevel in recent years has offered several powerful incentives. Where dynamic compression is not present, you may find some kind of infinity bonus. This also helps distributors temporarily dip down to deeper levels in the plan to capture profits. Also, nearly every Unilevel plan now offers a front-end fast-start bonus that pays a special one-time bonus amount on the first orders of new customers and new distributors.
These bonuses and new plan features all help overcome many of the compensation plan complaints that one time discouraged distributors. It makes the plan fairer for those who work the hardest, and produce the most.
Will a Unilevel Mlm Compensation Plan work for you?
2-5% of the distributors in any network marketing opportunity (the ones making the big money, building stable teams, and understanding what it really takes and applying it) will say network marketing is the greatest opportunity they were ever introduced to bar none!
Of the 95% of others, reviews will be a mixed bag ranging from ‘I made a little money,” “it wasn’t for me,” to “it’s an outright scam and a pyramid scheme”. This is true of not only Unilevel Compensation Plans but also of the Network Marketing Industry as a whole.
The difference between win or lose, is in the tools and training you receive, and in the person you are willing to become to succeed. Are you, or are you not, willing to become trained and informed to succeed in this industry? Are you ready to apply the knowledge and skills you learn on a daily basis? Are you really ready to take your life business and income to the next level? These are questions you should have answers to before joining an opportunity or considering Mlm, not after.
That’s actually the reason I put this article together. I think matrix plans are a great opportunity for the right person. But I also understand that it takes a lot of marketing knowledge, proper training, discipline, and mentorship, for most people to earn a significant income from home. People need to hear the truth; they need answers not hype. They need mentorship and strategies that work.
So I am extending an offer to people who are both looking at Unilevel Plans and to those already involved with them. To those looking at Mlm and to those already involved. I will help you learn how to recruit people, and build a sustainable residual business income from home using modern day MLM tools and strategies. The game has changed significantly, yet too many old boys are still flogging a dead horse telling you he’ll still plow just fine for you if you’ll just believe and want it bad enough.
So what I’ve done is put together an incredible amount of cutting edge information, tools, training, and resources that will teach you exactly how to succeed in Mlm, and it will work for you whether you’re involved with a Matrix plan, Binary, Stairstep Breakaway, or any other reputable Mlm Pay Plan! You need to come check me out on my blog at www.daveschlueteronline.com and sign up for some free training and my newsletter right now, then enter the training porthole at www.workwithdaveschlueter.com .
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