Compensation plan
Unilevel MLM Software
A unilevel is the simplest plan to explain and the easiest to over-pay. Width is unlimited, so cost control lives entirely in the per-level rates, the depth you unlock per rank, and whether you compress.
What you get
Outcomes operators report after moving onto the platform.
Genealogy equals sponsorship
No placement, no spillover, no holding tank. The tree is the sponsorship record, which removes an entire class of support question.
Cost lives in depth, not width
Unlimited width costs nothing extra by itself. Every additional paid level does. The platform states marginal cost per level from your own volume.
Rank gates that actually bind
Depth unlocked per rank, group volume with a per-leg cap, and qualification recalculated each period rather than granted permanently.
Plan structure
The placement shape this plan produces, drawn from its real width and depth rules.
Everyone you personally sponsor sits on your frontline. There is no width limit and no spillover, so the genealogy is identical to the sponsorship record.
How the plan actually pays
A unilevel has one structural rule: everyone you sponsor is on your frontline. There is no width cap, so there is no placement decision, no spillover and no holding tank. The genealogy and the sponsorship record are the same tree.
Commission is a percentage of the volume sitting at each level, paid down to the depth your rank has unlocked.
A worked period
Take a plan paying 5% / 4% / 3% / 3% / 3% down five levels, with a distributor whose organisation produced this volume:
| Level | Positions | Active volume | Rate | Commission |
|---|---|---|---|---|
| 1 | 4 | 1,200 | 5% | 60.00 |
| 2 | 11 | 3,300 | 4% | 132.00 |
| 3 | 26 | 5,200 | 3% | 156.00 |
| 4 | 41 | 6,150 | 3% | 184.50 |
| 5 | 58 | 5,800 | 3% | 174.00 |
Total: 706.50 on 21,650 of group volume — a 3.26% level cost. Note that the deepest levels cost the most in absolute terms despite the lowest rate, because that is where the volume is. This is why adding a sixth level is a much bigger decision than raising level one by a point.
What compression does to the same period
If four of the level-two positions were inactive and their groups active, compression pulls that volume up a level. The rate goes from 3% to 4% on the affected volume. On the numbers above, that is a few hundred basis points of extra cost on a slice of the group — routinely 10% to 20% of total level payout across a real organisation.
Configuration decisions to make before launch
- How many levels, and unlocked at which ranks. Depth is the expensive dimension. Gate the deepest levels behind ranks you genuinely want to reward.
- Rate shape. Front-loaded rewards personal selling; flat rewards depth building. Both are defensible; pick the behaviour you want.
- Compression on or off. Decide before launch. Switching later changes what everyone earns and needs disclosing.
- Per-leg cap on rank-qualifying volume, so a single leg cannot carry a rank.
- Fast start and matching bonus. These usually add 5 to 10 points of payout ratio and belong in the model from the beginning, not as an afterthought.
- What “active” means. A personal volume threshold per period, and whether an autoship counts. This one definition affects compression, ranks and pools at once.
Modelling it before you commit
Put your rate table and level depth into the plan calculator, then add the fast start and matching bonus. Most unilevel plans that fail modelling fail on the additions rather than on the level table — the level rates look conservative and the bonuses on top are what push the ratio past the gross margin.
Commission mechanics
How money moves through this plan, rule by rule.
| Frontline width | Unlimited. Every personally sponsored distributor is placed directly beneath their sponsorNo placement decision exists, which is why unilevel is the easiest plan to administer. |
|---|---|
| Commission basis | A percentage of each level's volume, set per level and per rank |
| Typical rate shape | Front-loaded — for example 5% on level one, 4% on two, then 3% down to the last paid level |
| Depth unlocking | Rank-gated. A new distributor may be paid three levels, a senior rank nine |
| Compression | Dynamic compression skips inactive positions when calculating level payouts, so active people move up a paid level |
| Volume definitions | Personal, group and qualifying volume tracked separately, since ranks are usually defined on group volume with a per-leg cap |
| Leg caps | Optional. A maximum percentage of group volume countable from any one leg, to stop a single leg carrying a rank |
| Common additions | Fast start on first orders, matching bonus on personal enrolments, and a leadership pool on total company volume |
At a glance
| Best suited to | Product-led companies with genuine repeat purchase, where the sales story matters more than placement strategy |
|---|---|
| Typical payout ratio | 35% to 45% of sales volume once fast start, matching and pool bonuses are included |
| Main design risk | Rate creep. Adding a level or a point 'to stay competitive' compounds across the whole organisation at once |
| Common depth | Five to nine paid levels, with the deepest levels unlocked only at senior ranks |
| Run frequency | Monthly, matching the period over which group volume is measured |
Questions operators ask before they switch
Straight answers on plan mechanics, migration risk and compliance. If yours is not here, ask us directly.
If width is unlimited, where does the cost come from?
What does dynamic compression actually change?
Do we need a per-leg cap on group volume?
How does a unilevel compare with a binary on cost?
Ready to Transform Your Direct Selling Business?
Send us your plan rules and we will run a live commission cycle against them, on your numbers, before you commit to anything.
- Configured in a sandbox before the call, usually within two business days
- No slide deck and no card — you watch your own plan pay out
- Your plan document stays confidential and is deleted on request
Prefer email? Write to us at sales@mlmsoftwarepro.com