Difference Between Uni Level and Matrix MLM Plan
There are many types of Compensation Plans, which Multi Level Marketing Companies use. With all those plans, Unilevel Compensation Plan and Matrix Compensation Plan are the widely used ones. Both have their own pros and cons, which makes it even more difficult to choose between these two. In this competitive environment, both compensation plans help the member to succeed.
Here, we share the features of the Unilevel and Matrix Compensation Plan.
Unilevel Compensation Plan
Let’s see, Unilevel Compensation Plan. It is one of the oldest and traditional compensation plans in the Multi Level Marketing Industry
As the name suggests, this Multi Level Marketing Plan allows you to sponsor or add only one line of distributors or members. Having said that, everyone you add or sponsor is your front line distributors or members. In the Uni Level Compensation Plan, there is no spill over option. Also, In Uni Level MLM Plan, there is no width limit, which means that you can add or sponsor any number of members you want. In the Unilevel Compensation plan, the depth of the group is limited and will be decided by the Marketing Company. But, the motive of this compensation plan is to add as many members for the team. Limiting the depth of the plan, actually, motivates the front line distributors to spread the team wide. The payment of level commission to all distributors, who are qualified is considered as the primary feature of the Uni Level compensation plan.
Advantages of Unilevel Compensation Plan
- In Multi Level Marketing Structure, Unilevel Plan structure is the easiest.
- In Unilevel Compensation plan, usually, one member requires the minimum amount of personal volume to start earning the commission.
- Solid and Quick income.
- In the Unilevel plan, all distributors get the same percentage of commission based on their downline sales.
- In the Unilevel Plan, it is easy for distributors to explain to their candidates.
Disadvantages of Unilevel Compensation Plan
- There is no Spillover in Unilevel Compensation Plan.
- Possibility of swift downline development is less in Unilevel Compensation Plan.
- With Unilevel Compensation Plan, many members can find it difficult to earn a considerable income.
MATRIX COMPENSATION PLAN
Coming to the Matrix MLM Compensation Plan or Forced Matrix Compensation Plan is established with a definite depth and width, compensation structure. The Width & Depth of the matrix helps to identify the structure of Matrix Compensation Plan. The Matrix Compensation Plan’s defined feature is the plan’s width which is limited. The Matrix Compensation Plan limits you to sponsor or add the number of distributors in the first level. Usually, there are only 5 or fewer first line distributors in the Matrix Compensation Plan. 4 x 7,3 x 9, 5 x 7 and 2×12 are the most commonly used Matrix MLM Plans. Matrix has the ability to spillover in advance, which is why the plan is so popular across the members and MLM Companies. This unique feature in Matrix Compensation Plan allows your downline distributors to sponsor in their downline, which eventually motivates and benefits your distributors and you respectively.
Advantages of Matrix Compensation Plan
- If Front line distributors are placed according to the width of the plan, then you can focus them and develop their business.
- Spillover is the major advantage of the plan.
- Organizations can be adjusted according to the flexibility of members.
- Members have the flexibility to adjust their organizations the way they set fit. Disadvantages of Matrix Compensation Pla n
- There is the possibility of prospects getting confused, when width and depth is taken into consideration for pay scale.
Comparison Between Unilevel And Matrix MLM Plan
Unilevel MLM Plan and Matrix MLM Plan are also called as Unlimited Width Plan and Forced Matrix Plan respectively. 2. MLM Implementation
Unilevel MLM Plan only has Frontline Distribution for all Distributors. While, Matrix MLM Plan has the Downline based on the Width * Depth, which will be fixed by MLM Companies. Thus, Unilevel MLM Plan is easier to implement than Matrix MLM Plan.
Unilevel MLM Plan has no spillovers, while Matrix MLM Plan has Spillovers based on the Width and Depth of the Plan.
Downlines in Unilevel Plan can be expanded comfortably as this plan is based only on the frontline distributors. While it can’t be done in Matrix Plan as the plan is limited to defined width and depth.
The Matrix MLM Plan offers more bonus when compared to the Unilevel MLM Plan. Sponsor, Fast Start and Level Commission bonus are available in Unilevel Bonus, while Sponsor, Level, Matching, Position and Forced Matrix bonus are available in Matrix MLM Plan.
These are the Features, Advantages and Disadvantages of Unilevel MLM Plan and Matrix MLM Plan. Hope you got a clear picture about these MLM Plans. MLM Software in Chennai, supports all types of MLM Compensation Plans.