Unilevel and Binary plan is two of the most popular plans in MLM business. Check out a comparison between unilevel vs binary mlm compensation plan.
Unilevel vs Binary MLM Plan - MLM Compensation
1st Dec 2021
Binary vs Unilevel MLM Compensation Plan?
Binary vs Unilevel MLM Plan – Comparison
Pay: Unilevel MLM plan pays up to a specific depth while binary MLM plan allows earning till unlimited depth.
Implementation: Unilevel MLM plan is quite straightforward and easy to implement. The mandatory matching of the member volume in the legs leads to the complexity in the implementation of Binary MLM Plan.
Downline expansion: The concept of spillover leads to the rapid expansion of the down-line in Binary MLM Plan while this is not possible in Unilevel MLM plan.
Downline structure: The Unilevel MLM Plan has a quite simple down-line structure while it is not the case in Binary MLM Plan.
Downline matching: Unilevel MLM Plan has no such concept of matching down-lines while in case of Binary MLM plan, it is necessary to match the number of members in the left and right leg.
Downline recruitment: In case of binary MLM Plan, there is a chance that individual extent of a distributor can influence the addition of new members in further down the downline to some extent due to the spillover concept. This is not the case in case of Unilevel MLM plan, where only a strong leadership skill can only influence the down-line members to recruit more members.
Teamwork: Binary MLM Plan thrives on the teamwork of the entire network while this does not influence the Unilevel MLM Plan.
It’s good to try MLM Software Demo by choosing both the plans and then one will be able to understand the compensation plans
Unilevel ( Multi-Level Marketing ) MLM Plan
This is one of the easiest ( MultiLevel Marketing ) MLM plans to understand. In this Unilevel MLM plan, the distributor is free to recruit as many members as he wants to and all of them will be recruited in his front line. the same compensation (commission) and the commissions are paid up to a fixed level to all the members at the same level, depending on the company policy. Members receive the commissions up to 5 to 7 levels deep. Try out the Unilevel MLM Calculator and work out your compensation.
Advantages of Uni-Level Compensation plan
It’s very easy to implement unilevel, because of it’s a simple and complex-free structure
Unilevel MLM Compensation can be more lucrative than any other compensation plan if we recruit good leadership in the downlines
Unilevl MLM Compensation plan you will get a faster Bonus and solid residual income
Disadvantages of Uni-Level Compensation plan
Unlike binary plan, Unilevel doesn’t pay up to unlimited levels
Not Much possibility of rapid downline development
No spillover or check match
In the Unilevel MLM compensation plan we directly can’t increase the volume of our downline except our primary or first level. This will affect the total income unless some strong leadership is recruited in the downline.
Binary ( Multi-Level Marketing ) MLM Plan
One of the most widely used ( MultiLevel Marketing ) MLM plans in the world, Binary MLM plan consists of two legs, namely the left leg (Power Leg) and right leg (Profit leg). Depending on the availability of the position each new member can be either on the left or the right leg
Each member in the binary network is responsible for recruiting two other members in their down-line and placing them in the two legs in his down-line. If he recruits more than two members, then they will be placed in the next available position in the left leg (power leg). This would lead to all the members in the up-line to share the profits of the sale generated by that member, irrespective of who recruited them. We named this concept as spillover. Calculate the compensations you would earn from a Binary MLM Plan with our Binary MLM calculator.
A distributor in a Binary Network will get the following commissions.
Advantages of Binary MLM Plan
Spillover:: Binary compensation plan, the up-line or individual who sponsors into the business will benefit from network marketing success
Unlike other compensation plans, the Binary compensation plan pays up to an unlimited depth
Rapid Expansion of downline is possible in Binary MLM compensation plan
Disadvantages of Binary MLM plan
You can’t make benefit from all your downline recruits. Only from one leg
Very complex downline structure, which includes spillover and checks matches
Flushing- If one leg is comparatively active and stronger than the other leg, there is a possibility for a great loss of time, money, and work.
The marketer who works in a MLM network will get the following commissions.
i. Join Commission
: MLM companies create join commission to encourage their mlm members and attract more new members to join binary network. this commission amount credit in user’s account at the time of joining the network .
ii. Direct Referral Commission
The referral commission is also referred as sponsor commission / leader bonus or the introducer bonus is the benefit gotten by a user for introducing new members to the downline network. The commission is calculated based on the percentage or fixed of the amount the company has already predefined. The commissioned amount is automatically credited to the user’s account.
iii. Pair Commission
Pair commission or binary commission. the distributor or user sponsors new member to balances both legs with active members. when the user balance both legs with active leg, user will be able to achieve pair commission. The commission is calculated based on percentage the amount the company has already defined.
iv. Bonus Commission
Companies create their own custom bonus to motivate their distributors and attract more distributors to join their binary network. this bonus amount is automatically credited to the distributer’s account based on their referrals which is defined by company.
v. Royalty Commission
In the royalty bonus, when a certain set target is achieved by distributers , then all the eligible members receive certain percentage of amount as bonus as per the company’s rule.