The Unilevel Compensation Plan
The Unilevel Compensation Plan is most likely the easiest of all the MLM compensation plans to explain to prospects, because it's the easiest to understand. You can sponsor a large (sometimes practically unlimited) number of distributors on your first level, but usually you get paid based on the work of those, plus a much smaller number of levels below that... usually only down about 5-7 levels, give or take one or two, compared to the unlimited depth of the Binary Compensation Plan. You'll be able to personally sponsor hundreds, or even thousands of distributors on level 1... usually paying the highest percent commission of any level. Your commission would be based on their sales, in addition to the sales of everyone they sponsor, etc, down as many levels as your plan specifies (approximately 6 or so). For example, imagine a fantastically wonderful situation (that would not actually ever happen exactly this way), just to get a picture of this in your head. Assume that you sponsor 10 people, and they each sponsor 10 people... and THEY sponsor 10 people each... all the way down 5 levels, you would get paid based on all of the sales of 10 x 10 x 10 x 10 x 10 people... 100,000 people. Of course, no distributor could ever do this... not even the best of the well known best. Many in this diagram will sponsor no one and drop out. And some will sponsor many, many more than 5.
This setup allows for practically unlimited income potential, which is a big reason why the unilevel compensation plan is so appealing. But it also requires a distributor to continue to recruit new distributors into his/her downline and/or obtain more customers. Just sitting by while the others in your organization do the work is less likely to bring you as much income as it might theoretically be able to do in a large Binary Compensation Plan downline. This one network marketing tip about the Unilevel compensation plan would save a lot of people who are trying to decide on a network marketing business opportunity a big headache if they did their homework before signing on the dotted line.
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