Monday, April 21, 2008

MLM Comp Plans - Why Companies Love Uni-Levels.

In "MLM Comp Plans - How Companies Hide Binary Breakage" I revealed where breakage is in a Binary compensation plan. Now let's move on to the Uni-Level compensation plan.

What's to love about a uni-level?
  • Unlimited Width: The downline structure is set up so there is rarely more than 3 levels of depth.
  • Simplicity: Commission qualifications are very easy to understand and predict.
  • Residuals-Free: Basic uni-level comp plans only pay for one-time product sales.
  • Ideal For Non-Renewables: The uni-level works best for products that are durable (books), intellectual (software), and other one-time order products.
  • Affiliate Format Friendly: The low depth typically pays nothing beyond the 2nd or 3rd sponsorship level.
  • Promotes Regular Sales: Affiliates must constantly find new customers to make money.

“Want more income? Recruit more prospects!”

Uni-level comp plans are great for those who are in love with the product and think others will love it as much as they do. They can't "sell", but they can refer what they like. Unfortunately, this type of comp plan does not offer residual income, so most people lose interest quickly.

Most networkers are in MLM to build a large, stable, & profitable income so they can retire. If you’re a super recruiter that’s less important to you, so, you’ll do well with a uni-level, because you’ll just go wide.

On the other hand, if communicating with your team, building deep and stable, and walk-away income are important to you, then a uni-level plan won’t suit your needs.

So, go find a company with a comp plan that will reward you for building manageable width and powerful depth.

Bill Tessore
Get the right skills … work hard and smart.

2 comments:

Gary McElwain said...

Hi Bill

I like the way you break down the compensation p[lans for us normal folk. Although I dont think I would like this one. I'm sure you know of which plan is best. I'll keep reading to find out.

Thanks for the great information

Gary

Bill Tessore said...

Hi Gary,

Thanks for the note. Having been an "average" guy all my life who's always looked for the proverbial "even break" I'm glad to see I've helped make that connection.

As for that elusive "best comp plan". My hard and fast rule is to point to what I know will work for individuals (we are all individuals after all). However, I do know of 1 company with a comp plan that in my opinion comes closest to being universally beneficial for all personality types.

I appreciate you,