Different Between Multi-level Marketing Compensation Plan
MLM Unilevel Plan
Unilevel plan that easily applies to all kind of MLM organizations no matter they are big or small. Multi-level marketing Unilevel plan is a no limitation on width, allow the distributor to sponsor only one front-line, all new recruit is on your front-line, you can build strong and deep down line network.
 |
| MLM Unilevel Compensation Plan |
Advantages
MLM Structure- Unilevel is the easiest plan among all multi-level marketing plan.
Commission Income-Start earning commission by using Unilevel plan requires the least amount of sale volume.
Easy Understand- Unilevel plan is easy to explain to prospects, no need to worry about losing a member because of the difficulty of grasping the concept.
Disadvantages
Teamwork And Bonding- Unilevel plan have less teamwork compare to other MLM plan, hardly every member will be on each other team.
Recruitment Difficult- Unilevel plan without using Spillover characteristic new member of the multi-level marketing company need to require strong and good recruitment skill to have longevity in the business.
Multi-Level Marketing Force Matrix Plan
MLM Force Matrix Plan
Force Matrix Plan is a pyramid structure arranged which fixed the number of width and depth. for example (3x5), (3x9), (5x7) it just like binary Plan but MLM Force Matrix plan limit the width and depth
 |
| Force Matrix Plan (3 x 5) |
Advantages
Spill Network- the limit of front-line cause distributor recruits extra new members had to place in their downline.
Easy to handle- Force Matrix plan is easy to handle and risk will be lower as it has a limitation on the width and depth.
Easy Understand- Force Matrix Plan is easy to explain as well as an understanding for new members
Easy Understand- Force Matrix Plan is easy to explain as well as an understanding for new members
Disadvantages
The Structure limitation- the Force Matrix comes with fixed Width and depth, it has a non-progressive nature.
Multi-Level marketing Stair Step Plan
MLM Stair Step Plan
Stair-step Plan is a Simple and easy to understood MLM compensation plan. Every Step forward is based on the sale volume. if the member achieves the set of target sale volume, will be promoted to the next higher rank (Distributor). Stair Step Plan let distributor or higher rank to responsible for both personal sale and group sale. Each Step got the different achievements to be completed only can promote to the next rank.
 |
| MLM Stair Step Plan |
Advantages
Easy Understand- the concept of the Stairstep is a bit similar to the Unilevel plan, with no limitation on the front-line. base on the percentage that shows on each rank to calculate commission.
Structure Stability- MLM organization that uses the Stairstep plan, had led their organization to the long term viability.
Disadvantage
Drastic change income- when distributor new recruit member archive sale target and be promoted to the next rank, the commission might have big changes, due to the same stair step.
Break-away- if there is a break-away element in the stair step compensation plan, new member success generates sale volume archive promote rank, their might break away from their upline.
Multi-level Marketing Binary Compensation plan
MLM Binary Plan
Multi-level marketing Binary Plan is a common preferable and widely accept by MLM Company members. Multi-Level Marketing Binary Plan member only allowed to sponsor two front-line members. if sponsors more then two members, it had to place at the level below.
Advantages
Easy understand-straight forward plan among other MLM compensation plan & this is easily understood by the prospects.
Unlimited depth- this Multi-Level Marketing plan has no limitation on the level, allow you to build as deep as you would like. if both left and right balance, this MLM plan will have a high commission payout.
Teamwork and bonding - as Multi-Level marketing company, teamwork between member are highly needed, as binary plan require balance on both lines for earning high commission, distributors encourage down-line to archive sale volume and result.
Spill Network- MLM Binary plan only got 2 front-line, there for many distributors which have skill on recruit will place it to below level, if members are placed under an active and powerful up-line, chances of success will be higher.
Spillover
Multi-Level Marketing Binary plan only has two front-line, there for an extra new recruit had to spill over to another level.
 |
| Spillover (Binary Plan) |
Disadvantages
Spill network- it is a two-edged sword, if a distributor place under the non-active line, then you require more effort to build your network.
Commissions might complicated- there are certain MLM Binary plan payout commission only if both legs are evenly matched, it will be complicated if you haven't understood the Company Plan.
Multi-Level Marketing Board Plan
MLM Board Plan
Board plan also names as Revolving Matrix (2*2 matrix). Among other multi-level marketing compensation plan, MLM board plan is a high profit giving to the board member. once the board is fully filled, the top member will be permanently moved out, and place into another new board, the original board will be split into two new board.
Advantages
Easy To Manage- as the members on the board are limit. The MLM Board plan becomes easy to manage.
Independently Managed- Board Plan is an independent structure, with minimum dependencies on the down-line or up-line of the member to generate commission.
Disadvantages
Structure limitation- MLM Board Plan can prove destructive for the MLM organization who wants to build a strong and large company with unlimited members.
Multi-Level Marketing Hybrid Plan
MLM Hybrid Plan
Hybrid MLM Plan is one of the highly recommended MLM plan,it comes with a combination of 2 or more traditional multi-level marketing compensation plan. for example the Unilevel MLM plan and Stair-step Plan, it will boost up the capability and remove the disadvantage of both plans.
Advantages
 |
| MLM Hybrid Compensation Plan |
Advantages
MLM Plan characteristic- the combination of 2 or more MLM Plan which obtains characteristic from both plan MLM Plan from Organization point of view.
commission earning- MLM Hybrid plan help you gain more opportunities to earning high commission.
Disadvantages
Structure complexity- putting 2 or more MLM plan together, the MLM plan will become complexity, the software to support Hybrid Plan must carefully choice.
Hard to understand- combine 2 or more MLM plan together it makes new members had to understand in detail.
