Generally, compensation schemes of Unilevel plans are as follows
Sponsor bonus is the bonus paid as an encouragement to the sponsors or distributors to promote business and recruit new members to their downline.
When the distributor advances to the higher ranks set by the MLM company with specific rank criteria, the distributor will earn this rank advancement bonus.
Fast start bonus is the predetermined amount payable per new recruit. This bonus provided a starter benefit for enrolling new members. To qualify for this bonus, a member has to achieve a target.
Level Commission is the amount payable to the distributor from the sales achieved by downline members. The Unilevel plan has an unlimited direct downline in the first level and each of those members can have their own unlimited downline members.
Since there is no complexity involved in the MLM Plan structure, it is very easy to understand for the new distributors.
When compared with other MLM plans, the MLM company can restrict the compensation amount and can avoid overflow.
It is easy to earn commission as there is no limit in recruiting the direct downlines and a certain percentage of the sales of the downline is also earned up to a fixed level deep down the Unilevel MLM plan.
As it is easy to run an MLM business with this plan, it is a universally adopted business model by most of the MLM companies.
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