If you have any exposure to MLM, you may know that network marketing businesses are built over compensation plans.
Now, compensation plans vary in size and function. Some are complex while others are straightforward. However, for the success of the MLM business, it’s essential that people understand the compensation plan that a company follows.
Otherwise, they simply can’t keep up with the complexities and just quit. Therefore, MLM industry veterans recommend adopting the simplest compensation plan per your business needs.
In this regard, a single-leg compensation plan is the most straightforward. Let’s look at the underlying mechanics of the single-leg plan and the benefits it offers.
What Is The Single Leg Mlm Plan?
A single-leg MLM plan is the simplest compensation plan with a linear structure.
Unlike other more common MLM plans ( Binary, Matrix, etc.), a single-leg MLM plan comprises only one line. It’s a straightforward plan and all the recruits are placed in a single line.
That’s why it’s also often called the Monoline Compensation Plan. The primary benefit of the single-leg MLM plan is that there is no hassle of multiple legs.
The network is entirely linear, which makes it easy to understand and simple for compensation distribution.
Structure Of The Single-leg Mlm Plan
Now that you understand what a single leg plan is, let’s delve into its structure and understand its core functioning.
Imagine the single leg plan as a line of people holding each other’s hands. Remember, it’s on a first come first serve basis. So, when you start;
In short, a single leg plan is truly a team effort. Each member receives the benefits of the overall network’s progress.
Advantages Of The Single Leg Mlm Plan
Single leg plan can be promising in many situations. Here are the most noteworthy benefits that the single leg MLM plan entails;
How Does The Single Leg Mlm Plan Work?
A single leg MLM plan comprises a single linear structure. When anyone recruits a new member, it is placed at the bottom of the line regardless of the position of the recruiters. However, the commision is shared throughout the line. In some instances, companies might restrict the commission to certain levels. Likewise, it can also impose conditions like you receive a higher percentage for a set number of recruiters you bring, say 8%. For every other recruitment or sales, you may receive half, so 4%.
Comparison With Other Mlm Plans
It might be apparent to you that the single leg plan is radically different from other more common plans. Let’s compare it to other Compensation plans and understand the difference;
- Binary Structure – Two legged structure.
- Depth – Companies might limit recruitment based on depth.
- Structure – All referrals from sponsors are placed in a single-level
- Depth – Unlimited.
- Structure – Forms matrix of fixed members like 3×2 etc.
- Depth – Limited width and depth
Challenges And Limitations
Just like benefits, a single leg plan also has some challenges and limitations.
Let’s explore them all;
It’s evident that the single leg MLM plan brings tons of benefits to the table. But its most significant advantage is its simplicity. Members can grasp it easily which simplifies the recruitment process. However, a few challenges remain like income disparity and market saturation. If companies can follow a proactive approach and take timely steps to mitigate these challenges they could ensure continuous and long-term growth with a single MLM plan.