The Unilevel compensation plan is one of the earliest forms of network marketing compensation structures. These plans allow distributors to sponsor an unlimited number of first generation (or level) distributors. Compensation is earned from the first five to eight levels with five being the most common. Fixed and sometimes varying percentages are paid on sales volume by each pay level. It is the total of these percentages that ultimately determines the maximum payout to the field of distributors.
Some Unilevel plans have roll-ups, compression and or infinity bonuses.
This allows top distributors to qualify for deeper level commissions until downline leaders achieve higher recognition and also qualify for deeper commissions. Some current pay plans also incorporate “infinity bonus”. This can be misleading, as infinity is only to the next distributor with equal qualification. Volume accumulates through the end of the month, and generally checks are issued once per month. There are also companies offering” Matching Bonuses” based on the performance of personally sponsored distributors
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Thursday, April 23, 2009
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