Sunday, June 22, 2008

MLM Comp Plan Ups And Downs - The Uni-Level

In my previous post "MLM Comp Plan Ups And Downs - The Binary" we looked at the attractive and the not-so-attractive sides of the Binary compensation plan. Now let's see what turns people on and what turns people off about the Uni-Level.

WARNING: fail to ask these 3 questions at your own risk!

1. How much volume do I need to make a given income goal?
2. How many people do I need to make a given income goal?
3. What do I need to do to make a given income goal?

Uni-Levels typically allow infinite width and very limited depth. Few uni-levels ever exceed 4 or 5 levels of sponsorship.

Here are the Uni-Level turn-ons.

1. It's a great "one-trick pony" plan: one product companies like this comp plan.
2. It promotes personal sales: the highest percentage of income is earned from front line sales, usually 20% to 30%.
3. It drives the behavior of product movement:
4. This plan eliminates manipulation: unlike the matrix or the aussie 2-up team members are not "spilled" or "given" to the upline sponsor, so there's no system cheating.
5. Simplicity: it's easily explained and understood.

Here are the Uni-Level turn-offs.

1. It's just so shallow: If your lowest level team member sponsors someone you get NOTHING.
2. It discourages upline support: second, through final level commissions are usually much smaller than personal commissions. (ex.: levels 1 through 5 pay 30%, 10%, 5%, 3%, 2% respectively.)
3. One-time commissions: residual income is non-existent.
4. There's no rest: one product means reps are constantly hunting for new customers like vampires for new blood.

The uni-level comp plan offers no pay-off for unscrupulous manipulation. Plus upline support is often harder to find than an honest politician. And the lack of back-end products creates a "sell, sell, sell" environment with zero provision for long-term wealth.

On the other hand, uni-levels are easy to understand, and sales people love them because they pay best for personal sales.

If you want a work at home sales job, then the Uni-Level compensation plan is perfect for you. If however, you are a future oriented person who wants to build a powerful business for a little while and then enjoy the rest of your life, then move on.

I appreciate you,

Bill Tessore

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