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.

When Should You Join A MLM Company?

In "MLM Golden Goose … Or Mud Duck?" I introduced the first of the 5 Pillars for Success in a network marketing company. Just like any physical building, if a network marketing company does not have all five of these components in its foundation the chances of you building a walk-away income of your dreams are slim to none.

Timing in a company and timing in the industry is the second most critical pillar for your success in a MLM company. Industry trends can create massive growth in a company … when the timing is right. Take Excel Tele-Communications for example.

1. The Shake-Down Phase

Excel Tele-Communications was a network marketing company that purchased blocks of long-distance telephone time at wholesale rates and then re-sold them to distributors and their customers for much less than the big Bells could.

In Excel's first two years, they had a lot of growing pains. The worst was the major Bells' refusal to switch customers to this new, wholesale rate service. It took lots of time, money, and Congressional action to force them this change.

Many distributors lost money and quit because they jumped at the cry of “Ground Floor Opportunity”". Two years created a huge difference for those who waited out that shake-down period.

2. The Momentum Phase

Once the Bells complied with the Feds and all the other start-up problems had been worked out business began to pick up. Trend savvy heavy hitters began building with Excel. Times were very good. Predictably, lots of people made lots of money for a while.

3. The Fizzel Phase

Then the bottom began to drop out of the industry with the introduction of the flat-rate service trend. Excel’s bubble began to fizzle down to nothing.

Excel was destroyed from within by greed and corruption. This and the Enron Scandal aside, the new flat-rate service industry trend signaled the need for Excel to make huge changes for survival.

Without those adjustments Excell would have still died.

Profit margins in the long-distance telephone industry had gone the way of the dinosaurs. Today the trend is service bundling. Even flat-rate alone is just not enough any more.

Timing in a MLM company and timing in the industry is absolutely critical to achieving your long-term goals and survival. If you want to build a network marketing business that will pay your grand kids, then you must be sure the timing is right.

Get in too early and you’ll lose your shirt because no one really knows what’s going on. Get in too late and you’ll go broke due to lack of interest.

You must wait until the timing is right, then act with vigor and a solid plan for success.

I appreciate you,

Bill Tessore