Comparison of Unilevel and Matrix compensation plan – MLM software Chennai
A multi-level
marketing business(MLM) or network marketing is a tiered, commission-based
business.
Here, sales associates not only
sell the product themselves but if other sales representatives join the company
beneath a sales associate, the sales associates also earn a commission every
sale the new sales representative makes!
Thus, in MLM business there are two
possible income streams: Their own sales, and a percent of the commission made
from other sales representatives!
What are MLM Business plans?
MLM compensation plans decide when
and how much commission should the independent distributors should be provided
in a network.
The various compensation plans in
existence are Binary, Unilevel, Matrix, Hybrid, Generation MLM Plan, etc.
Calculation of compensation and
payouts become more complex when more members are added to the network. A
perfect MLM
software would definitely help you in dealing with all this smoothly.
Unilevel MLM Plan
A Unilevel MLM Plan is one of the
most popular MLM Plans in the world.
In a uni-level plan, a distributor
can typically sponsor as many agents as his frontline.
The main advantage of Uni-level MLM
Plan is that there is no limit on the number of distributors one can
sponsor! The number of sponsors, the more is the commission.
Also, all the sales distributors in
the same level would receive the same compensation and make a note that it will
be only paid out on a limited depth (can be up to 7 levels deep).
Some also consider this as a
disadvantage because it inhibits deep sales organizations.
The Unilevel MLM compensation plan
calculator allows you to calculate the commissions, returns, etc.
Matrix MLM Plan
A Matrix MLM plan
has mainly two parameters: width and depth.
The width describes the number of
frontline distributors that you can sponsor and the depth mentions the number
level for which you will be compensated for.
For example, a 3×8 Matrix MLM
Structure will have only 3 distributors as his frontline and the commission will
be paid for up to 8 levels.
Matrix MLM plan is almost very similar
to the Unilevel MLM plan.
The only major difference is that
in the forced matrix plan, each distributor can only sponsor a certain number
of distributors as his frontline.
And all the other distributors
added, will be placed down under the other distributors.
At the same time, in the Unilevel
MLM plan, each distributor can sponsor as many distributors as he likes and all
these distributors will be on his frontline!
Also, explore the Matrix MLM
compensation plan calculator online.
Unilevel Vs Matrix MLM Compensation Plan – A comparison
Pay: Matrix MLM Plan pays more in comparison to the
Unilevel MLM Plan.
Implementation: Since the Unilevel MLM plan involves the uni-level
distribution of members, implementation is quite easier than the Matrix MLM
plan.
Downline expansion: Downline expansion is easier in case of a Unilevel MLM
plan due to the uni-level layout.
Downline structure: The down line structure of the Unilevel MLM plan is
different from that of Matrix MLM plan.
Matrix MLM plan consists of
multiple legs in which members are placed according to the parameters (width
and height).
Downline Matching: Downline matching is not essential in case of Unilevel
MLM plan whereas it is essential in the case of Matrix MLM plan.
Downline recruitment: In the case of the Unilevel MLM plan, a sponsor cannot
influence the downline recruitment since the concept is that of uni-level.
Since the Matrix MLM plan has the
concept of spillover, a sponsor can influence the downline recruitment to an
extent.
Teamwork: Matrix MLM Plan depends on the entire network while
this does not influence the Unilevel MLM Plan.
Thanks for reading our content. For
more details, kindly visit our website mentioned below;
MLM software chennai
No 62, 4th floor,SV Koil street,
Mylapore, Chennai – 600004 ,
Tamilnadu – India
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