Hybrid Compensation Plan in MLM Software

Theory and Practice of the Unified Hybrid Compensation Plan

The structure of a basic unilevel plan consists of an Unlimited Width (ie a Distributor may sponsor an Infinity Number sponsored on its Front Line) and a Finite Depth. (The Distributor may obtain commissions of a finite number of levels in his or her organization. Downlines). This depth limitation encourages distributors to build across, Delhi MLM Software.

The disadvantage of building an organization that is too broad is that Distributors who are members of the front line will lose the individual attention of their "Sponsor", because due to the high number of Frontals it will be very difficult to lead, administer, encourage and help develop the Business to their sponsored, Delhi MLM Software.

One great advantage of this compensation plan is that it is easy to explain to prospects.

The main characteristic of a uni-level compensation plan is that each dealer that qualifies, will be made the payment of commissions associated with each level of the structure, Mumbai MLM Software That is to say that each percentage of commission varies according to the level where the sale is made (Commission by level), in addition each percentage remains invariable for each specific level. A All distributors are paid the same commission percentage on sales made at each level of their Downlines.

With this type of plan, everyone will remain a distributor, regardless of sales results and recruiting. In this type of Plan there are no Ranges. The plan uses only one type of commission, the commission per level, Mumbai MLM Software.

Generally, the percentage oscillates around 5% of the sales volume in each level of the Downline.

At present you will not find a company that uses the Uni-level Compensation Plan in its purest form. Most of the Uni-level plans that we know today are actually a mix of the Uni-Level Original Plan with elements of other Compensation Plans, thus forming the "Hybrid Unity Level" Compensation Plan, Mumbai MLM Software.

In other words, the Uni-level Plan is usually the backbone and then other commissions such as Fast Start Bonuses and / or Bonus Pool are added to increase the income to the Distributors.

Some elements added to the Uni-Level Original Plan are:

• Commissions Fast start (Fast Start Bonuses)

• Ranges

• Pool Bonuses (Leadership Funds)

• Infinity Commissions (Bonos al Infinito)

• Compression

• Lifestyle bonds (cars, houses, travel)

Once it becomes a Hybrid Unilevel Plan, it may no longer be so easy to explain to prospects, because the additional elements make the Plan much more complex and extensive to explain, Delhi MLM Software.