Which is better: Unilevel or Binary MLM? Let us address the pressing issue.
The MLM Compensation Plan determines how and when distributors will be compensated for sales earned. Binary, Unilevel, Matrix, Generation, Stair Step, Gift/Donation, and Hybrid MLM Plans are some of the most prevalent MLM Compensation Plans.
In this article, we will compare the binary MLM Plan with the Unilevel MLM Plan.
The management of rewards and payouts gets progressively complicated as the depth of the MLM network grows. This problem, as well as the whole network, may be properly managed with MLM software.
Unilevel MLM Plan
This is one of the simplest MLM schemes to grasp. The distributor in this Unilevel MLM scheme is allowed to acquire as many members as he likes, and all of them will be recruited on his front line. According to corporate policy, all members at the same level get the same income (commission), and commissions are given up to a defined amount. Commissions are paid to members up to 5 to 7 layers deep. Use the Unilevel MLM Calculator to figure out your compensation.
The marketer that operates in a Unilevel MLM network will receive the following commissions:
The following commissions will be paid to marketers that work in a Unilevel MLM network.
Bonus for the sponsor
A distributor will receive a Sponsor Incentive or a referral incentive for bringing new members into the network.
Level commissions
Level commissions are the commissions earned by distributors for the sales made by their downline members.
Binary MLM Plan
Binary MLM is one of the most popular MLM binary plans in the world, with two legs: the left leg (Power Leg) and the right leg (Profit leg). Depending on the position’s availability, each new member can be on either the left or right leg.
Each member of the binary network is responsible for recruiting and putting two additional members in their down-line in the two legs in his down-line. If he recruits more than two members, they will be assigned to the left leg’s next vacant slot (power leg). As a result, regardless of who recruited them, all members in the upline would share the benefits of the sale created by that person.
The following commissions will be paid to a distributor in a Binary Network.
Bonus for the sponsor
A distributor will receive a Sponsor Incentive or a referral incentive for bringing new members into the network.
Bonus for matching
When a new member is added into a network, such as a binary network, and it results in the balancing of the legs in terms of either sales volume or member volume, that distributor will get a matching incentive.
Unilevel vs Binary MLM Plan – Comparison
- Pay: Unilevel MLM plans pay up to a certain depth, whereas binary MLM plans pay up to an unlimited depth.
- Implementation: The Unilevel MLM strategy is simple and easy to implement. The necessary matching of member volume in the legs complicates the implementation of the Binary MLM Plan.
- Downline expansion: The notion of spillover allows for quick downline extension in the Binary MLM Plan, but this is not achievable in the Unilevel MLM Plan.
- Downline structure: The Unilevel MLM Plan has a very basic downline structure, but the Binary MLM Plan does not.
- Downline matching: In a Unilevel MLM plan, there is no idea of matching downlines, however in a Binary MLM plan, the number of members in the left and right leg must be matched.
- Downline recruitment: In the event of a binary MLM Plan, the individual extent of a distributor may impact the addition of new members in the downline to some amount owing to the spillover idea. This is not the case with a Unilevel MLM strategy, where only strong leadership skills may encourage downline members to recruit more members.
- Teamwork: The Binary MLM Plan survives on the collaboration of the whole network, but the Unilevel MLM Plan is unaffected by this.
Conclusion
The binary plan software, like the Unilevel MLM Plan, has its own set of benefits and drawbacks. It is up to the MLM firm to determine which one to use according on its goods, business practises, and goals.
