What is a unilevel plan?

A unilevel plan can be likened more as a one-level structure where all the people you personally enroll remain at the same level under you, mostly not having any limits on how wide that level can be. You can have as many people at the same level as you want. You can enroll as many people as you want, and they all sit on your first level. So, it's wide and you can control your direct recruits well.

How does it work?

Easy: You add somebody; they go on your first level. That's it. You can add 5 people or 50 people—or whatever. Each one of your recruits can create his or her own team, and you earn commissions based on how deep your unilevel tree is.

Structure: Width is unlimited; each person sits below you at the same level.

Payouts: Your unilevel tree will grow to bring you a percentage of sales at deeper levels, though the percentage may reduce the deeper it goes.

Flexibility: There is usually no limit to how many people you can enroll directly.

What is a matrix plan?

Now we will see the matrix plan, which is more or less like a Tetris game; you have specific slots to fill, and each new recruit has to fit into the right spot. A matrix can be described in terms of two variables: width and depth. So if you have a 3x3 matrix, you can have at most 3 people at the first level, each with at most 3 recruits below them, and so on.

How does it work?

You add three people, they add another three, and so on. If you add more than three people, they spill over into the teams of your recruits which is sometimes fantastic for them. They have recruits they didn't have to track down personally, but it also means you need to pay close attention to placement.

Structure: Limits the number of people that could be added at any level and how many levels deep your team is allowed to go.

Payouts: They pay you based on filling up the matrix levels, and sometimes, there are bonuses in spillover.

Flexibility: You are kind of restricted.

Head-to-head comparison of unilevel vs matrix MLM plan

Structure

The unilevel plan is like having a party, where there is no limit on how many guests you could invite. All those you directly add are set at the same level. It is very wide and potentially can have unlimited growth. You can imagine spreading your arms out as far as they stretch because your network can keep growing, and everyone is sitting neatly on that first level.

The matrix plan is much like planning a dinner with assigned seating. You have a fixed number of chairs at each table. Then those are all occupied, and any additional guests there just spill to the next table. A 3x3 matrix allows you to have three people on your first level and for each of them to have three more. It's kind of a more controlled environment, but you do have to keep track of where everybody sits.

Payout structure

A unilevel plan pays you according to the depth of your tree, but in terms of commission, it can be smaller the deeper you go. There is always something to gain when you reach up higher.

In a matrix plan, it's all about filling up levels. You will get paid nicely based on how your rows fill up. And when they spill over, there is even a bonus for this; just like getting those extra cookies when your best friend suddenly decides to bake twice the amount they had actually thought. A bit more complicated, but rewarding when spillover comes through.

Initial investment

The ease of setting up a unilevel plan often is matched with a relatively low investment for getting started and another for a unilevel MLM platform. There is nothing to do with managing layers of recruits nor any angst about how they all fit together; it's like opening a simple savings account: You put in a little, and you start seeing returns.

But, the matrix plan can cost you a bit more. Why? You will have to keep track of how your crew grows and who gets their place. It is actually setting up an investment account with some extraneous rules—there might be a little more to get started with a matrix MLM platform. But hopefully, you got it right and will wind up growing the money nicely over time.

Scalability

Think of the unilevel plan as blank paper—you can add as many new recruits as you like, and there is never a cap on this. You are free to expand in as much depth and width as you can imagine, making it really scalable.

Now, the matrix plan is sort of a paint-by-numbers setup. There are boundaries—you only grow as wide and deep as that matrix structure allows—infill that 3 by 3 grid, for example. If you need a more structured approach, then this really works well, but it offers no endless growth like the unilevel plan does.

Risk management

The risk management part using a unilevel plan is very simple since the overall rules are not so many and may be managed easily. If one part of your team performs poorly, just bring in more recruits, kind of like in the analogy of putting new seeds in a garden when needed.

With a matrix plan, spillover often shares the risk. If you sign up more people than there is space for on your team, that excess spills over into other teams run by your teammates, lifting them as well. It's like sharing extra plants with the neighbors: everybody benefits, but it does take a bit of extra effort to keep things organized.

Either matrix or unilevel, risk management becomes comparatively easier by employing an MLM platform to manage the business.

Recruitment flexibility

You are not limited if you need to bring in new people with the unilevel plan. Take anybody with you and not be bothered where in the structure they end up. It is a good option for those who want a big network without restrictions.

On the other hand, the matrix plan is more or less like a dinner party where you have a guest list for the party, and there are particular tables for each. When the new recruits join, they have to occupy one particular spot at the table. And when the table fills up, the next table is used and so on. It is maybe a bit more rigid and narrow, but it is sure of its growth step by step while ensuring everybody a seat in the system.

Maintenance costs

The fact that the unilevel plan is very simple in structure means that all the maintenance costs will be considerably low. More on that later, but for now, just think about it: Fewer moving parts and less to track—like running a small coffee shop where you know every customer by name. The matrix plan needs a bit more attention, since it holds different levels and spillover dynamics. It is more like operating your busy restaurant: You need to make sure everybody is properly seated and happy with the service. It is definitely a costly affair but can be worth it, if you are going for a more structured growth.

Suitability for small teams

If a person is just starting their MLM business, the unilevel plan has been proven to be an excellent option. It is actually very much like running a small family business—everyone pitches in and pulls their weight, while most of the nuts and bolts can easily be kept on the base level without too much extra stuff floating around.

On the other side, the matrix plan can be a little bit more challenging for a small team at times. It is more of a game of chess, where you have to see at every step that every piece is ending up in the proper place. To do that for the small team, everyone has to plan ahead in order to end up in the right place.

Long-term growth

In a unilevel plan, we have no limit to long-term growth. Rather, it forms an extremely wide network and endless expansion, creating residual income most of the time. If you are a dreamer with big ambitions to expand extensively and have monetary flows in the years to come, do consider this plan.

A matrix plan provides good stability and clean structure—attractive if you are a fan of organizing things. However, because it can have a cap on how wide and deep your network can grow, it may limit growth potential once those slots are filled. It is a neat and tidy bookshelf but once you get to its capacity, you have got to find another spot for new books.

Okay, since you have now got your mind around the unilevel plan as well as the matrix plan, it should not intimidate you as much now, should it? Just choose one that has the best feel for you. Good luck with building those connections!