Key Terms in Unilevel MLM Plan
Frontline Members:
Direct recruits of a distributor, all placed on the same level (first level).
Downline:
The network of members under a distributor, including both direct and indirect recruits across multiple levels.
Levels:
Horizontal layers in the structure representing how deep the network extends.
Commissions are typically paid on sales within a set number of levels.
Unlimited Width:
A feature that allows distributors to recruit unlimited frontline members without any limit.
Commission:
Earnings calculated based on the sales volume or performance of a distributor’s downline within eligible levels.
Sales Volume (SV):
The total sales generated by a distributor’s network, often used to determine commission payouts.
Genealogy Tree:
A visual map of the entire distributor network, showing relationships and hierarchies among members.
How the Plan Works
In the Unilevel MLM Plan, each distributor can recruit an unlimited number of direct members, known as frontline members. These members are placed on the first level, directly under the sponsor. As each distributor continues to recruit new members, their downline expands horizontally, and commissions are calculated based on the sales generated by the downline through a predetermined number of levels.
Example:
Let’s suppose Alice is a distributor who joins the Unilevel MLM Plan. She recruits 5 people: Bob, Charlie, David, Eve, and Fay. These 5 individuals are placed on her first level (frontline).
Level 1: Bob, Charlie, David, Eve, Fay (5 direct recruits by Alice).
Level 2: If Bob recruits 3 people (e.g., Gina, Harry, and Igor), they will be placed under Bob, becoming part of Level 2 in Alice’s network.
Level 3: If Gina recruits more members, they will be placed under her, forming Level 3 in Alice’s network.
Now let’s see how commissions work
Referral Bonus / Sponsor Bonus
In the Unilevel MLM Plan, the Referral Bonus or Sponsor Bonus generally refers to a commission or bonus earned by a distributor when they personally sponsor (recruit) a new member into the network.
These bonuses are usually one-time payments, awarded to the sponsor for successfully enrolling a new member into the system.
How It Works
When Alice recruits a new distributor (e.g., Bob), she earns a Referral Bonus for sponsoring that person.
The amount of the bonus can vary depending on the company’s compensation structure and may be:
Referral Bonus Amount
The Referral Bonus is often higher than commissions earned from lower levels, as it directly rewards the sponsor for acquiring a new distributor or customer.
It can be:
A fixed fee (e.g., €50), or
A percentage (e.g., 10%) of the registration fee or first purchase amount.
Examples
Example 1:
Alice recruits Bob into the Unilevel plan, and Bob pays a registration fee of €100.
Alice may receive a Referral Bonus of €20 (i.e., 20% of Bob’s fee) as a reward for bringing him into the system.
Example 2:
If Alice recruits Bob, and Bob purchases a product worth €500,
Alice might earn a Sponsor Bonus of €50 (10% of Bob’s purchase).
Purpose of the Referral Bonus
Referral Bonuses are designed to motivate distributors to actively recruit new members into the MLM program and help grow the network.
These bonuses are typically more profitable than commissions from lower levels, offering immediate rewards for successful recruitment.
Level Commission
Level Commission refers to the earnings a distributor receives from the sales made by the people in their downline, which is organized by levels.
The first level includes the distributor’s direct recruits, while the subsequent levels consist of the recruits of those direct members.
The commission typically decreases as the levels go deeper, but the distributor still earns from all levels of their network—allowing them to generate passive income as the network grows.
How It Works
In the Unilevel MLM Plan, a distributor earns a commission based on the position of team members within the network.
Commissions are paid on the sales and purchases made by members in each level of the distributor’s downline.
For example:
If Alice recruits Bob (Level 1), she earns a commission on Bob’s sales.
If Bob recruits Gina (Level 2), Alice also earns a commission on Gina’s sales.
And so on, for deeper levels.
Level Commission Amounts
In the Unilevel Plan, commissions are calculated based on the level of each member in the distributor’s downline:
Level 1 (Direct Recruits):
Alice earns a 10% commission on the sales made by her direct recruits (e.g., Bob, Charlie, David, Eve, Fay).
Level 2 (Recruits of Direct Recruits):
Alice earns a lower commission (e.g., 5%) on the sales made by her second-level members (e.g., Bob recruits Gina).
Level 3 (Recruits of Level 2):
Alice earns an even smaller commission (e.g., 2%) on sales made by the third-level members (e.g., Gina recruits Jane).
The commission percentage decreases as the levels go deeper, but Alice continues to earn from every level of her downline.
Purpose
Encouraging Network Growth:
Level commissions motivate distributors not only to recruit new members but also to support and mentor their downline.
As the network grows, the distributor continues to earn from more levels.
Passive Income:
Distributors earn a percentage of all sales made by their downline, allowing them to benefit from the collective efforts of the network.
Fast Start Bonus
The Fast Start Bonus is a special incentive designed to reward new distributors or their sponsors for reaching specific milestones shortly after joining the MLM program.
By encouraging quick action and active engagement, this bonus helps distributors build early momentum and lay the foundation for long-term success.
How It Works
The Fast Start Bonus is a commission awarded to new distributors—or their sponsors—for achieving certain goals within a set timeframe, typically within the first 30, 60, or 90 days of joining the MLM program.
This bonus is often tied to actions such as:
Recruiting a specific number of new members,
Achieving a sales target,
Or meeting both criteria (recruitment and sales).
Fast Start Bonus Amount
The bonus amount is configurable and depends on the objectives set by the MLM business owner.
It can be:
Example: The bonus might be $200 for recruiting three new members and achieving $1,000 in sales within the first 30 days.
Example
Alice joins the MLM program and successfully recruits three new members, generating $1,000 in sales within her first 30 days.
By hitting these targets, Alice qualifies for the Fast Start Bonus and earns $200 as a reward for her early success.
Purpose
The Fast Start Bonus is designed to motivate new distributors to take immediate action and actively engage in the MLM business.
By rewarding early efforts, this bonus encourages new members to start building their network, generate initial sales, and create momentum.
It helps set them up for sustained growth and long-term success within the company.
Rank / Rank Advancement Bonus
In an MLM plan, a Rank represents a distributor’s level or position within the network, based on performance factors such as sales volume, number of recruits, or the number of personally sponsored members.
As distributors meet specific criteria (e.g., sales or recruitment goals), they advance in rank, moving from positions like Associate to Manager, Director, or Executive.
Rank Advancement Bonus Amount
The Rank Advancement Bonus is a commission or reward given to a distributor when they achieve a new rank within the MLM structure.
This bonus is designed to motivate distributors to strive for advancement by offering:
Example
Alice starts as an Associate in the MLM program. After meeting the required sales and recruitment criteria, she advances to the rank of Manager.
Upon achieving this new rank, she receives a Rank Advancement Bonus of $500 as a reward for her progress.
Bob, a higher-level distributor, advances to the Executive rank. His bonus might be higher—such as $1,000—depending on the MLM company’s structure.
Purpose
The Rank Advancement Bonus encourages distributors to:
By rewarding those who reach higher ranks, this bonus:
The bonus structure can be customized by the MLM business owner to align with company goals and reward those who demonstrate exceptional growth and leadership.
Note:
Level commissions can also be customized based on rank, meaning higher-ranked distributors may:
This helps incentivize network expansion and pushes distributors to climb the ranks within the system.
