Matrix vs Unilevel Compensation Plan
There are many MLM compensation plans out there in the Multi-Level Marketing industry. Matrix plan and Unilevel plan are among the popular and world’s best Network Marketing plans today. Both compensation plans have their own structure and advantages which help the MLM business to grow and succeed. Below is a comparison between Matrix plan and Unilevel plan.
Matrix MLM Plan
Matrix plan, also known as the Forced Matrix Plan, is formed as a pyramid tree structure. The width and height are restricted in this plan. As a result, this serves as a huge motivation for more members to be recruited in the downline. The compensation in this plan is calculated with the formula of width*depth. The matrix plan has a limited number of members on each level. The default members are added to the first level and when new members are recruited, they spill over to the next level and even to further levels.
Bonuses in Matrix MLM Plan
- Sponsor Bonus
A sponsor bonus or referral bonus is given to members for recruiting new members and filling up the first level of the Matrix plan.
- Matching Bonus
When a downline member gets compensated, his/her sponsor gets a certain percentage of that amount as a Matching Bonus.
- Level Commissions
This is earned when new members are added or recruited. In a 3*3 matrix, a level commission is earned when the first three members recruit new members and gain sponsor bonus and then the next level members are able to recruit three new users to earn more bonuses.
- Matrix Bonus
The Matrix Bonus is earned by members when they have completely filled their matrix structure with downline members.
- Matrix plan allows quick growth with no limits.
- As the number of members multiplies on further downline levels, the earnings also multiplies.
- Matrix plan encourages group sales as members work as a team.
- It motivates the distributors to be active because of the great compensation possibilities.
- THE Matrix MLM plan is flexible, thus enables an MLM business to extend its matrix treewidth and height as per their plan.
Unilevel MLM Plan
Unilevel Plan is of an unlimited width plan, allowing a sponsor to own several distributors on a single line. There is normally no spill-over as everyone sponsored by you will be on your frontline. In this plan, a user can add members to an unlimited level. The sponsor gets earnings from the sales volume done by every downline.
Bonuses in Unilevel MLM Plan
- Sponsor Bonus
This bonus is earned when a sponsor recruits new members into the downline.
- Level Commission
This is earned by the distributors when their downline members achieve sales.
- The Unilevel MLM plan is easy to understand and simple to start so it is easy to explain it to the new members.
- This plan has only one level for each member, so it’s easy for the member to manage it.
- The unlimited width of this plan lets users add unlimited members to their downlines. That results in more earnings for the user.
- It is easy to implement the Unilevel plan in an MLM business because of it’s simple structure.
- Users can earn bonuses and commissions quickly because of the unilevel structure.
Matrix vs Unilevel Plan – A comparison
- Pay: Matrix plan pays more compared to Unilevel plan.
- Structure: Unilevel plan is of an unlimited width plan whereas the Matrix plan’s width and height are restricted.
- Implementation: Implementation of the Unilevel plan is quite easier than the Matrix plan because of its simple structure.
- Bonus: Bonuses offered in the Matrix plan are higher than the Unilevel plan.
- Downline Distribution: There will be no spillover of downlines in the Unilevel plan whereas there is a spillover in the Matrix plan because of its structure.
- Downline growth: Downline expansion happens easier in the Unilevel plan compared to the Matrix plan due to the structure.
- Teamwork: In the Matrix plan, members in the network depend on each other and they work as a team to get more earnings while this does not happen in the Unilevel plan.
In conclusion, the Matrix plan and Unilevel plan have their own advantages and disadvantages. It’s up to the MLM company to choose the compensation plan which will suit best for their requirements and needs.