Overview:
The Unilevel MLM Plan is one of the simplest and most straightforward structures in the multi-level marketing industry. It allows distributors to recruit an unlimited number of direct downlines (frontline members) without any restrictions on width. All recruits are placed on the same level, directly under the sponsor, which creates a wide structure as more members are added.
Key Features:
- Unlimited Frontline Width: Recruit as many direct members as you want; no limit on the number of members on the first level.
- Single Level Payout: Commissions are typically earned on multiple levels, with most companies paying out up to a specific depth (e.g., 5 or 7 levels).
- Straightforward Structure: Easy for new members to understand and start recruiting.
- No Balancing Required: Unlike the Binary Plan, there’s no need to balance legs, which reduces complexity.
How the Unilevel MLM Plan Works:
Let’s take an example to illustrate how the Unilevel Plan functions:
- Alice joins the Unilevel MLM program and recruits her first three members:
- Bob
- Carol
- David
- Alice’s direct recruits (Bob, Carol, and David) are on her Level 1.
- Each of these recruits can also start recruiting their own team members:
- Bob recruits Eve and Frank.
- Carol recruits Grace and Henry.
- David recruits Ivy and Jack.
- As Bob, Carol, and David continue to recruit new members, they build their own downlines, forming Alice’s Level 2, Level 3, and so on.
Unilevel Tree Diagram Example
Alice
/ | \
Bob Carol David
/ \ / \ / \
Eve Frank Grace Henry Ivy Jack
Explanation:
- Level 1: Alice’s direct recruits (Bob, Carol, David).
- Level 2: Members recruited by Alice’s downline (Eve, Frank, Grace, Henry, Ivy, Jack).
- Level 3 and Beyond: As downlines recruit further, they form subsequent levels.
Step-by-Step Breakdown of the Unilevel Plan
- Recruiting and Building Teams:
- Alice, as the sponsor, can recruit an unlimited number of direct downlines.
- Bob, Carol, and David each build their own teams, forming subsequent levels.
- Commission Structure:
- Alice earns commissions on the sales volume generated by her recruits, usually up to a certain depth (e.g., 5 or 7 levels).
- For example, Alice might earn:
- 5% on Level 1
- 4% on Level 2
- 3% on Level 3
- 2% on Levels 4 and 5
- Incentives and Bonuses:
- Unilevel plans often include rank-based bonuses, where members earn additional rewards for achieving certain sales milestones or recruiting a specific number of people.
- This motivates members to recruit and grow their teams further down the line.
Key Advantages of the Unilevel Plan
- Simple Structure: Easy for new members to understand and get started.
- No Leg Balancing: Unlike Binary Plans, there’s no need to balance legs or teams.
- Unlimited Width: Members can recruit as many people as they want on their first level.
- Flexibility: Ideal for companies looking for straightforward growth without complex requirements.
Example Calculation of Earnings
- Alice recruits 3 members (Bob, Carol, David) who each generate $1,000 in sales monthly.
- Alice’s Level 1 commission is 5%, so she earns:
- $1,000 (Bob) + $1,000 (Carol) + $1,000 (David) = $3,000 total sales.
- 5% of $3,000 = $150 commission.
- If each of Alice’s Level 1 recruits brings in two new members who generate $500 each:
- Alice earns 4% on Level 2 sales.
- Total Level 2 sales: 6 members × $500 = $3,000.
- 4% of $3,000 = $120 commission.
- Thus, Alice’s total monthly commission is:
- $150 (Level 1) + $120 (Level 2) = $270.
Unilevel MLM Plan Recap
- Perfect for beginners due to its simplicity.
- Suitable for companies that prefer straightforward, unlimited recruiting.
- Encourages a wider network and incentivizes deep growth through multiple levels.