What is Unilevel compensation Plan (or)
Unilevel MLM Plan.
 Unilevel MLM Plan allows you to
sponsor only one line of distributors, so
everyone you sponsor is on your
forehead.
 There are no limitations in width of the
Plan and fees are normally paid on a
limited depth.
 Each member can add as many
members in his downline. As there is no
limitations to this plan, you can build a
stronger and lengthy downchain.
 Regular compensation plans pay
anywhere between 5 and 7 levels deep.
 The objective of this compensation plan
is to recruit many members of the team
first and then line them even.
 Unilevel Plan is easy to understand
for anyone.
What is Unilevel compensation Plan (or)
Unilevel MLM Plan.
 To earn commission there is a
minimal amount of member volume
required.
 This plan really works smooth for
part-timers.
 According to Uni-Level compensation
plan, one person controls the entire
down chain members, here the first
person will get the dividend of each
other down chain member
respectively.
 Modern Unilevel plans also give away
with bonuses which makes this plan
more attractive.
What is Unilevel compensation Plan (or)
Unilevel MLM Plan.
 While comparing to other MLM Plans,
Uni-Level Plan is much easier to
understand, so that it is an easy Plan
to explain. The training time for this
plan will be very less while comparing
to other plans.
 Most of the modern companies use
Uni-Level Plan as the basic plan and
customize it to another plan.
 While considering any kind of MLM
Organization, Uni-Level plan is
technically the good plan to deal
with.
 Uni-Level plan will undoubtedly score
5 out of 5 STARS for any start-up MLM
company.
1. How to Start an MLM company
MLM Startup Guide
So, you’re ready to launch your new MLM
business. You’ve got it all planned, Can’t miss
product? Check. Hottest compensation plan to
hit the streets? Check. Rock solid business
plan? Check. Startup financing? Check. You’ve
been working for months on end getting ready
for your launch and you’re finally ready to pull
the trigger.
2. Find Product or Service
Product or Services is also as important as compensation plan. If you have designed a
good marketing plan for your company launching then now begin your product search
in your present position and where you are. From my experience, during product
hunting prefer easily transportable product.
Below are the numbers of methods by which you can explore new product concepts.
If you really want to know the pulse of the market, must read the classified section.
Scan them for new product being offered and find the product and stake your claim,
negotiate them for ownership and exclusive right. Now, use your creativity to present
the product differently.
Hunting on the internet is fun, inexpensive and allow you will explore new product
ideas. Contact can be possible to promoter instantly through email or IM and soon you
are on the way to negotiating for that next hot product to drive your company sales.
There are still more products looking for distribution than there are companies looking
for products.
Using Newspapers, Trade magazines, Trade shows, Foreign publication, Manufactures
you can hunt the product, if you don’t strike it rich with your first product, find another,
and another, and another. Good luck and good hunting!
3. MLM Compensation Plan/
Marketing Plan
Finalizing the product or services next important thing is to design a lucrative
marketing plan also referred to MLM compensation plans.
An MLM compensation plan’s ability to influence representative behavior is huge. A
well design MLM plan will motivate the sales force to work harder and achieve
specific tasks.
The bottom line is if distributors understand MLM commissions, they can make
better choices about companies in which to invest their money and lives.
Income Generally Falls Into These
Categories:
 Fast Start Income or the income you earn by signing up or enrolling a new
wholesale member. Fast Start Generations Income where you get compensated
because people you personally recruited (or people that they recruited etc),
enrolled, or signed-up, are becoming productive and enrolling new members.
 Matching Bonus Income where you earn for example a 10% matching bonus on
other peoples' monthly paychecks that you personally sponsored.
 Monthly Signup Bonuses and matching bonuses where you get a financial share in
a bonus pool based upon enrolling for example at least five new members in a
payout.
 Infinity Bonuses where you get for example 2.5% of the total business sales
volume in your organization simply because you've attained a higher rank.
 Residual Income is paid based upon repeat product or service purchases and is
usually paid monthly for the reorders in your organization or network. This is
especially powerful in the unilevel with dynamic compression comp plans.
 Pool Commission: An amount of money is put into a pool and divided up among
those distributor qualify a certain target.
 Single Level commission: A commission type where the entire amount goes to a
single individual.
 Differential Commission: A type of commission whereby a distributor receives the
difference between the amount for which he qualifies and the amount for which
his first level distributor qualifies.
The most commonly used pay plans are outlined including the Binary, Matrix, and
Unilevel-Dynamic Compression, and Stairstep Breakaway.
A good company management team will design a network marketing comp plan so
that both novices and experienced professionals can succeed in their MLM Business.
4. Picking Partners of your MLM
Company
Now, from the beginning, the spark of idea in your mind’…you are about to launch
your MLM company. You have to put much thought and planning around the
product line, your compensation plan, your marketing strategy and hundreds of
other big and small decisions that you made along the way. It’s more probable that
you had a partner because it’s unlikely possible to do everything yourself. So, you
need a good business partner or team of partners who all contributed, and will each
share in the success of the business. You plan on being in business a long time (at
least let’s hope so!). Picking your partners is one of the most important and longlasting decisions facing your business.
A most common question which I have faced regularly as a consultant, by
management of MLMs startup companies- what are the top reasons why MLM
startups fail. From my experience most of the people surprised by my response, the
most common reasons why MLM startups fail result from clashes among the
business partners.
4. Picking Partners of your MLM
Company
The term “partners” is used collectively to include shareholders in a corporation,
firm, or anyone else with an ownership interest in the business entity. Some critical
issues which normally arise between the shareholders should be consider as
 Partners should have same mission and vision, if partners don’t believe in
common mission and vision and just tagging along because they see a significant
financial opportunity. It is likely to lead to clashes down the road.
 Everyone wants to be the big boss. Avoid this by clearly delineating the roles of
each partner. Among those companies that fail due to management clashes, a
common problem is a collision of egos.
 There should be a specific exit strategy and documented in business operating
agreement if the partners can’t agree on important issues.
5. Selecting the MLM Startup
Software:
Now I think, you have made all of your preparation except software to launch a new
MLM company with a new idea and in a unique way. Finally, you have to select a
good MLM software development company.
Software is one of the most important elements in all of your preparation. Only
professional and experienced software company can customize the software
according to your compensation plan. Readymade MLM software is not suitable for
any MLM company because every company has a unique marketing idea with a new
compensation plan. From my experience software is the second most common
reasons why MLM startups fail. If you plan in being in the business for a long time (at
least let’s hope so!), picking your software development company is one of the most
important and long-lasting decisions for your MLM business. Most of the future
decision related to products, incentive models, weak network chain, city with locality
and company progress depends upon your software MIS reports. We recommend you
our company NetBIZ Infotech product “MLM Starter Software” as one of the best
industry product with 100% customization scalability. You can purchase this software
by paying only setup cost on 0% startup cost.
6. Holding Genealogy Positions
Should MLM company owner or partner or management hold the position in
Genealogy Tree? Is it legal and wise for holding the position in tree?
Straightforward answer of this question is yes, it is legal but not 100% wise as per
customer or distributor end. The challenges associated with the management
holding a position in the genealogy can be overcome with proper planning and
execution.
Unfortunately, because startup MLMs normally don't recognize the issues, planning
and execution in this area are often lacking. So if you are starting an MLM and are
considering taking a position in the genealogy, you should first carefully consider
these points:
 Termination of business relationship in future.
 Conflict the interest of different genealogy positions.
6. Holding Genealogy Positions
Inequitable distribution of Income at different positions, the owners who most
often desire a position in the genealogy are:
Those who receive the very top positions therefore benefitting from the majority of
downline volume; and
Those who are in the field and thus are in a position to build a business. That leaves
out other owners who, although critical to the success of the business, are not in a
position to build the MLM business.
6. Holding Genealogy Positions
For example, a partner who is in charge office-bound functions such as Information
Systems is certainly critical to the success of the business.
However, they have little opportunity to build a business because they are not in
the field. This leads to an inequitable distribution of income among management
which can result in animosity and disputes unless the income of office-bound
personnel is balanced through other means.
If after careful consideration you elect to move forward with owners and/or
management holding genealogy positions, ensure that you have your legal strategy
in effect before agreements are reached or promises made regarding genealogy
position distribution so these challenges don't impede the business.
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