Matrix vs Unilevel Compensation Plan
There are numerous MLM compensation plans out there in the Multi-Level Marketing industry. Matrix plan and Unilevel plan are among the famous and world’s best Network Marketing plans today. Both compensation plans have their own hierarchical structure and benefits which help the MLM business to develop and succeed. Below is a comparison between the Matrix plan and the Unilevel plan.
Matrix MLM Plan
The matrix plan, also known as Forced Matrix Plan, is formed as a pyramid tree structure. The width and height are limited in this plan. Thus, this serves as a huge inspiration for additional individuals to be recruited in the downline. The compensation in this plan is determined with the equation of width*depth. The matrix plan has a predetermined number of individuals on each level. The default individuals are added to the first level and when new individuals are enrolled, they spill over to a higher level and even to additional levels.
Bonuses in Matrix MLM Plan
1. Sponsor Bonus
Support bonus or reference reward is given to individuals for enlisting new individuals and filling up the first level of the Matrix plan.
2. Matching Bonus
When a downline affiliate gets compensated, his/her support gets a specific level of the amount as a Matching Bonus.
3. Level Commissions
This is earned when new individuals are added or recruited. In a 3*3 matrix, a level commission is procured when the first three individuals recruit new individuals and gain a sponsor bonus, and afterward, the individuals can recruit three new clients to earn more bonuses.
4. Matrix Bonus
The Matrix Bonus is earned by individuals when they have totally filled their matrix structure with downline individuals.
Advantages
- The matrix plan allows quick growth with no limits.
- As the number of members multiplies on further downline levels, the earnings also multiply.
- The matrix plan encourages group sales as members work as a team.
- It inspires the affiliates to be active because of the extraordinary compensation possibilities.
- Matrix MLM plan is adaptable, enables an MLM business to extend their matrix treewidth and height according to their plan.
Unilevel MLM Plan
Unilevel Plan is of a limitless width plan, allowing a sponsor to own a few affiliates on a single line. There is typically no overflow as everybody sponsored by you will be on your frontline. In this plan, a client can add individuals to a limitless level. The sponsor gets the profit from the sales volume done by each downline.
Bonuses in Unilevel MLM Plan
1. Sponsor Bonus
This bonus is acquired when a sponsor recruits new individuals into the downline.
2. Level Commission
This is earned by the affiliates when their downline individuals accomplish deals.
Advantages
- The Unilevel MLM plan is straightforward and easy to begin so it is not difficult to explain it to the new members.
- This plan has just one level for each member, so it’s simple for the part to manage it.
- The limitless width of this plan allows clients to add unlimited individuals to their downline. That outcomes in more profit for the client.
- It is easy to implement a Unilevel plan in an MLM business because of its simple structure.
- Users can earn bonuses and commissions quickly because of the uni-level structure.
Matrix vs Unilevel Plan — A comparison
- Pay: Matrix plan pays more as compared with Unilevel plan.
- Structure: Unilevel Plan is of a limitless width plan while Matrix plan’s width and height are confined.
- Implementation: Execution of the Unilevel plan is very simpler than the Matrix plan due to its basic design.
- Bonus: Bonuses presented in the Matrix plan are higher than the Unilevel plan.
- Downline Distribution: There will be no spillover of downlines in the Unilevel plan though there is a spillover plan in the Matrix plan as a result of its structure.
- Downline growth: Downline extension happens simpler in the Unilevel plan compared and the Matrix plan due to the structure.
- Teamwork: In the Matrix plan, individuals in the network rely upon one another and they work as a team to get more income while this doesn’t occur in the Unilevel plan.
In conclusion, the Matrix plan and the Unilevel plan have their own advantages and disadvantages. It’s up to the MLM organization to pick the compensation plan which will suit best for their necessities and requirements.