How does Unilevel MLM work ? 

Unilevel MLM compensation plan

What is Unilevel MLM Plan?

Unilevel MLM plan is the easiest of the MLM plan to understand. In this plan, each of the distributor can sponsor as distributors as he/she may like and all these distributors will be on his/her frontline. This is similar to a Forced matrix compensation plan with a main difference being, that in Forced Matrix plan, each distributor can only sponsor a certain number of distributors as his frontline. All the additional distributors will be placed further down under other distributors.

Unilevel MLM Plan structure

Unielvel MLM Plan structure

In a unilevel plan, a distributor typically sponsors as many distributors as his frontline. There is no limit as to the number of distributors that one can sponsor. For instance, in the above MLM plan, the distributor A has sponsored the distributors B,C, D, E, ∞ who are his frontline. The distributors B, C, E, .. are free to sponsor as many distributors as they like. The main advantage of unilevel plan is that, as there is no limit on the number of distributors one can sponsor, the more number of sponsors, the more is the commission.

Unilevel MLM Compensation structure

In unilevel plan, all the distributors in the same level would receive the same compensation ( commission ) and the commissions are generally paid out on a limited depth ( can be upto 5 to 7 levels deep). Some also consider this as a disadvantage however, as the unilevel plans are constrained by the limited depth of commission which inhibits deep sales organizations.

Support for Unilevel MLM Plan

MLM Network Software from supports Unilevel MLM compensation plan where the administrator or the manager can set the levels upto which the commission can be paid( both manual and auto-debit is supported ) and also the commission in percentage or amount can be set while creating the unilevel distribution plan.