Working of unilevel MLM plan

Updated on 18 November 2021
3 min read

Compensations in Unilevel MLM Plan

Unilevel MLM plan is the easiest of the MLM plan to understand. This MLM Plan allows one line of distribution where each of the distributors can sponsor as many distributors as they like and all these distributors will be on their frontline (i.e no spillover). There’s no width limit on this plan, which means they can build stronger and longer downline (length).

Unilevel MLM Plan structure

In unilevel MLM plan, as the name suggests, unlimited distributors are allowed for a sponsor, with no width restriction to the number of frontline distributors. This means that all the distributors in the same level would receive the same commission and the commissions are generally paid out on a limited depth (can be upto 5 to 7 levels deep). Thus the main goal in a Unilevel Compensation plan is to sponsor large numbers or frontline distributors and then encourage them to do the same. Unilevel Plan can be made more attractive by introducing some rewards like level commissions, sales commissions, bonuses or incentives on a particular level achievement or a fixed number of frontline. The plan boosts teamwork and distributor engagement.

Compensation in Unilevel MLM

The compensation in unilevel MLM plan provides pay out at a specified level depth (generally, 5-8 levels), which usually calculated as 3-8 % of the total business volume to the specified level. Thus provides a fraction of every effort from one’s downline member up to certain level depth by granting a commission from the business volume of every member (downline) individually. Though level commissions, sales commissions and business volumes depend on the MLM organisations, unilevel MLM plan can be made more rewarding if strong leadership is recruited in the downline. As direct increase in the volume of downline is not possible except primary or first level, a strong leadership helps to support without affecting the total income.

Benefits of Unilevel MLM Compensation

  • Because of its simple and complex-free structure, most of the MLM companies nowadays use Unilevel compensation plan as their basic plan.
  • It’s very easy to apply, so always stands as the best MLM compensation plan for any class of MLM Organization.
  • The main advantage of unilevel plan is that, as there is no limit on the number of distributors one can sponsor, so more is the commission.
  • Everyone is treated as same level and paid the same commission rates, rather than advancing and breaking away.
  • Limitation in depth encourages distributors to build wide.
  • Integration of reward bonuses at any level and customization of compensation level easy.

Support for Unilevel MLM Plan

Many Unilevel Plan MLM Software supports the plan where the director can set the levels upto which the commission can be paid or the commission in percentage while creating the distribution plan.


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