As is well known, businesses all over the world use a variety of MLM plans to manage their MLM operations. Multi-level marketing is a straightforward business in its most basic form. It comprises enlisting new members into your network and selling products or services via a distribution network.
Your network becomes more strong and you make more money as more people join you. However, some compensation plans using this business model are overly complex, making them difficult for users to understand.
One of the most straightforward and lucrative compensation systems available today is the one-leg MLM model.
Let’s examine the operation of a single-leg MLM Strategy.
A straight-line MLM plan with only one leg is known as a single-leg MLM plan. It is also known as a monoline or linear MLM plan. The plan is straightforward, as the name suggests. It all comes down to aligning in the same direction.
One of the most alluring compensation plans in the network marketing sector and the most straightforward company model that anyone may use is the single-line MLM plan. The most remarkable aspect about it is that it just needs one leg to function.
Existing members are automatically degraded when a new member joins. In the single-leg system, you will receive monthly compensation that will put you above everyone below you, including any members you do not sponsor.
The benefit of building a downline under the single-leg design is that you will be rewarded for other people’s efforts, even if they are higher up the hierarchy than you.
With a single-leg MLM plan, you can expand your business at a low cost. The more popular your firm becomes, the faster and more money you will make.
Like many other compensation plans, the single-leg MLM plan includes a number of features and advantages for managing network marketing enterprises.
How does a Single leg MLM plan operate?
The single-leg MLM strategy and the forced matrix plan are extremely similar. Technically speaking, there are several ways in which the single-leg design works better than the forced matrix layout.
There are certain slots that must be filled in order for the forced matrix MLM strategy to function. However, with the single-leg plan, there is always the chance to make money anytime a new member joins the network.
The joining time and date define the structure of the downline. Those who sign up initially will receive the rewards more generously.
There is no predetermined cap or minimal requirement for this compensation scheme to function, which makes it a fascinating one. In a single-leg plan, profit shares may also be distributed. In addition, since this plan is solely based on the first-come, first-served principle, timing is extremely important.
Benefits and Drawbacks of a Single-Leg MLM Plan
You must weigh the pros and cons of a compensation plan before choosing one for your MLM network. The single-leg MLM plan has some of the following benefits and drawbacks.
- Earn passive income:
It is a strongly advised strategy because it offers all participants opportunities for passive income. Its income potential is unrestricted as well. Members are promised some pay whenever a new member, including spillovers, is added to the line.
- First come first serve:
In a single-leg MLM structure, having more distributors equates to having higher money. Every time a new distributor joins, early network members, benefit more. On the other side, as the chain expands, the lowest members will also start to earn.
- Emphasis on sale:
In this model, each recruiter is only required to add one distributor who would report directly to him. They now have more time to concentrate on increasing product sales rather than worrying about hiring more employees.
- Chance of being inactive:
The main disadvantage of the single-leg approach is that it might promote inactivity. Members may take advantage of the arrangement and choose to put in less effort because they benefit from everyone else’s referrals.
This is the reason why many businesses have requirements that employees must meet in order to start receiving payments. This makes sure that before any profits are distributed, everyone has contributed fairly.