The unilevel compensation plan is one of the easiest to understand, as the name suggests it allows its reps to sponsor one line of network marketing distributors. In other words everyone you bring to your opportunity is placed on your frontline. You’re building wide here with this comp plan but one thing to keep in mind is there are typically depth limitations, meaning commissions will only be paid 5-7 levels deep.
its important to point out most modern network marketing companies using this structure have made slight changes to it, to make it more attractive and inspire more teamwork. One of these tweaks include “bonuses” this is meant to make their compensation plan look more appealing and to give their organization to make moves that are more beneficial for the company (i.e. becoming a leader to people even when you’re not making money from them)
Disadvantages of this comp plan: This plan doesn’t make for a happy home, in order to make money with this plan you are forced to place everyone in your front line however this can be very hard on new recruits. Because when they newbies come into the company their first task will be to go after their warm market (friends and family), but by doing so each will be working in competition with one another.
I’ve also found that in this kind of comp plan you’ll spend a lot of time training and re-training your network marketing downline because its up to you to manage these individuals because this comp plan does not allow for complex upline structure.
Advantages of this compensation plan: as i said before its easy to understand so it’s a lot easier to explain to prospects and their for an easier sell “The more you recruit the more money you make”.
The best use of this comp plan: In my opinion the best use of this plan is to recruit a large number of frontline distributors and encourage them to do the same. I find this comp plan makes life easier for part-timers to earn income when compared to other plans.