How does a Single leg MLM Plan work?

As we know, many compensation plans are deployed by companies all over the world to run their MLM business. In its most pure form, multi-level marketing is a simple business. It entails selling goods or services through a distribution network and recruiting people to your network. The more people that join you, the more powerful your network becomes, and the more money you earn.

However, this business model is unnecessarily complicated in some compensation plans and users find them hard to follow. Single leg MLM plan is one of the most simple and profitable compensation plans out there today. Let’s have a look at how a single-leg MLM plan works?

What is a Single leg MLM plan?

A Single Leg MLM Plan, also known as a Monoline or Linear MLM Plan, is a type of compensation plan used in MLM companies. It is quite different from other MLM compensation plans like binary, matrix, or unilevel plans in terms of how it structures the downline organization and compensates distributors. As the name implies, the plan is very simple. In a Single Leg MLM Plan, all distributors are placed in a single line or queue. This means that every new distributor is added to the bottom of the organization, creating a single, straight-line structure.

The single leg MLM Plan is one of the most appealing compensation plans in the network marketing industry and the simplest business model anyone can follow. Its most intriguing feature is that it just requires one leg to work. You will earn monthly revenue in the single-leg system, which will trump everyone below you, including members you do not sponsor.

One of the advantages of creating a downline in the Single Leg MLM Plan is that you will be compensated for the efforts of others, even if they surpass you in the hierarchy. You can grow your business at a low cost with a single leg MLM strategy, and the more you appeal to the public, the faster and more money you will make.

How Does a Single Leg MLM Plan Work?

Single Leg MLM plan compensation structure thrives on the principle of ‘first-come, first-served,’ where the sequence of joining plays a pivotal role. In the case of the Single Leg MLM Plan, there is always the possibility of earning whenever a new member enters the network. This is an intriguing compensation plan because it has no set limit or minimum requirement to operate. It is also possible to distribute profit shares in a Single Leg MLM Plan.

When someone new joins the plan, their enrollment fee or product purchase contributes to the commissions and bonuses of those higher up in the line. As the line grows longer with new recruits, the potential for commissions increases for those at the top.

Under this structure, you earn commissions based on both your own sales and the sales generated by promoters in your downline. You receive a specific percentage of commission from the sales they generate.

While there are no universal mandatory requirements, certain companies may impose conditions before you can establish your lineage. For instance, if you occupy the top position in the chain, you will automatically receive compensation for every member below you, whether they were personally referred by you or placed in your downline through spillover.

However, some companies may choose to require you to sponsor at least 2 individuals before you become eligible for compensation. In such cases, your commission percentage from their earnings may be slightly higher compared to the rest of your downline.

Here is an explanation,

In a single leg MLM structure, the entire company operates as a single line. All newly recruited distributors are placed in the same linear structure. As a company representative, anyone who joins after you will be in your downline.

Now, the company has a policy where you start receiving a 10 percent commission on the earnings of those you personally recruit only after you’ve brought in 3 representatives of your own. For everyone else in your downline, those you didn’t personally recruit, you receive a 5 percent commission on their sales.

This represents the fundamental compensation structure of a typical single leg MLM plan, although variations may exist from one company to another and at different levels within the organization.

What makes a Single leg MLM Plan different from Other Compensation Plans?

Bonuses in the single leg MLM plan

The single leg compensation plan opens up different options for members to earn. The three major bonuses in the plan are referral bonus/sponsor bonus, rejoin bonus, and matching bonus. Let’s have a look at how these bonuses work.

a. Referral/Sponsor Bonus

The incentive gained when a user refers or sponsors a new member is known as the referral bonus or sponsor bonus. As a referral incentive, he or she will receive a specified sum. In the same way, a user can get the most out of a sponsor bonus. To do so, they can recommend an unlimited number of people and earn endless bonuses.

b. Rejoin Bonus

The single leg MLM plan has a unique element called the rejoin bonus. If a user is granted free re-entry into the system, they will receive a bonus. Because the plan has just one leg, the user can receive numerous re-entry benefits as the network grows.

c. Matching Bonus

When a user receives a bonus, such as a referral bonus or a rejoin bonus, the sponsor will also receive the same bonus. So both the user and the sponsor will receive the bonus at the same time.

Pros and Cons of Single Leg MLM Plan

Before you decide on a compensation plan for your MLM network, you need to consider its advantages and disadvantages. These are some of the pros and cons of the single leg MLM plan.

Pros

• First come first served. In a single leg MLM plan, being the first to join means greater benefits. Early members earn more when new distributors join, and even those at the bottom eventually profit as the network expands.
• This plan is highly recommended as it offers all members passive income opportunities with no earning limits. Introducing new members guarantees compensation.
• Each recruiter only recruits one distributor directly under him in this plan. As a result, they have more time to focus on product sales rather than worrying about recruitment.
• The monoline plan is the simplest to grasp and explain. Its requirements are easily understood, allowing new members to recruit without any training.
• No set targets or deadlines; with a monoline MLM plan company, you can work as much as you want and maintain a consistent income.
• Every member receives incentives as the company grows. In this plan, profit is possible for everyone, regardless of their role in the company’s growth, as long as the company is profitable.

Cons

• The main downside of the Single Leg MLM Plan is its potential to promote inactivity, as members benefit from others’ referrals. This potentially leads to reduced effort by some members.
• Without setting conditions on commissions, companies may spend excessively, leading to declining profit rates as the membership grows.
• Higher earnings for early members can demotivate newer ones, causing discomfort and the perception of unfairness regarding senior members’ income.
• Managing a Single Leg MLM Plan can be challenging for MLM companies because the structure is not as balanced as other plans. This can lead to disparities in earnings among distributors.

Winding up

The single-leg MLM plan is one of the best and most effective multi-level marketing plans for network marketers. It deals with simplicity and enables you to earn by focusing on two key aspects: recruiting new members and encouraging their purchasing activity. Overall, the single-leg plan is a highly recommended MLM plan for MLM success.

Meet The Author

Pavanan Ghosh

Co-founder and Chief Marketing Officer at iOSS

A seasoned analyst with a passion for innovative marketing ideas and trends in software development, Artificial Intelligence, and Multi-Level Marketing trends. Specializes in spotting major trends at the intersection of multiple new technologies. Has years of experience planning and delivering compelling projects which combine two or more of these increasingly popular technologies.