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

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.