Comparison of Unilevel and Binary MLM Compensation plan – MLM software Chennai

Unilevel MLM Plan

This is one of the easiest MLM plans to understand. In this Unilevel MLM plan, the

distributor is free to recruit as many members as he wants to and all of them will

be recruited in his front line. the same compensation ( commission) and the

commissions are paid up to a fixed level to all the members at the same level,

depending on the company policy. Members receive the commissions up to 5 to 7

levels deep.

The marketer who works in a Unilevel MLM network will get the following

commissions.

Sponsor bonus

For recruiting new members into the network, a distributor will earn a bonus

known as a Sponsor Bonus or referral bonus.

Level commissions

The commission attained by the distributors for the sales done by their downline

members is termed as level commissions

Try out the Unilevel MLM Calculator and work out your compensation.

Binary MLM Plan

One of the most widely used MLM plans in the world, Binary MLM plan consists of

two legs, namely the left leg (Power Leg) and right leg (Profit leg). Depending on

the availability of the position each new member can be either on the left or the

right leg

Each member in the binary network is responsible for recruiting two other

members in their downline and placing them in the two legs in his downline. If he

recruits more than two members, then they will be placed in the next available

position in the left leg (power leg). This would lead to all the members in the

upline to share the profits of the sale generated by that member, irrespective of

who recruited them. We named this concept as spillover

A distributor in a Binary Network will get the following commissions.

Sponsor bonus

For recruiting new members into the network, a distributor will earn a bonus

known as a Sponsor Bonus or referral bonus.

Matching bonus

When a new member is introduced into the network, say a binary network, and it

will lead to balancing of the legs in terms of either the sales volume and the

member of volume, then that particular distributor will earn a matching bonus.Calculate the compensations you would earn from a Binary MLM Plan with our

Binary MLM calculator.

Unilevel vs Binary MLM Plan – Comparison

 Pay: Unilevel MLM plan pays up to a specific depth while binary MLM plan

allows earning till unlimited depth.

 Implementation: Unilevel MLM plan is quite straightforward and easy to

implement. The mandatory matching of the member volume in the legs

leads to the complexity in the implementation of Binary MLM Plan.

 Downline expansion: The concept of spillover leads to the rapid

expansion of the downline in Binary MLM Plan while this is not possible in

Unilevel MLM plan.

 Downline structure: The Unilevel MLM Plan has a quite simple downline

structure while it is not the case in Binary MLM Plan.

 Downline matching: Unilevel MLM Plan has no such concept of

matching downlines while in case of Binary MLM plan, it is necessary to

match the number of members in the left and right leg. Downline recruitment: In case of binary MLM Plan, there is a chance

that individual extent of a distributor can influence the addition of new

members in further down the downline to some extent due to the spillover

concept. This is not the case in case of Unilevel MLM plan, where only a

strong leadership skill can only influence the downline members to recruit

more members.

 Teamwork: Binary MLM Plan thrives on the teamwork of the entire

network while this does not influence the Unilevel MLM Plan.

Binary MLM plan, as well as the Unilevel MLM Plan, comes with its own set of

advantages and disadvantages. It is up to the MLM company to decide on which

one to opt for, considering their products, business policies, and targets. It’s good

to try MLM Software Demo by choosing both the plans and then one will be able

to understand the compensation plans.

Thanks for reading our content. For more details, kindly visit our website

mentioned below;

MLM software Chennai

https://www.mlmsoftwarechennai.in/

mlmsoftware92@gmail.com

No 62, 4th floor, SV Koil street,

Mylapore, Chennai – 600004 ,

Tamilnadu – India

+91 9952935907