Unilevel Multi Level Marketing with Ranks

The unilevel multi level marketing is a popular and effective way for businesses to grow exponentially.

This week’s project is precisely to create a simple but robust multi level marketing system of the unilevel type with the use of Google Sheets (requested by a client). After making the customer version we decided to recreate a simplified version to be offered to anyone who needs it.

But before going into the details of what it does and how to use this system, let’s find out together what it is when it comes to Unilevel Multi Level Marketing System.

The Complete Guide

An unilevel marketing structure is similar to a MLM structure in that you have a distributor who sells the business’s products to other consumers.

The only difference is that in unilevel, instead of selling to customers at the same level as you (i.e. individual consumers), you’re selling to customers who are one level below you (i.e. one subordinate distributor).

For example, if you’re an independent business owner who has a distributor who sells you products, you’ll be their unilevel distributor. With an unilevel structure, you’ll take a percentage of the sale price of the product that you’ve sold to that distributor’s subordinate distributor.

These percentages can then be assigned to other distributors, who will then be responsible for selling the products to their subordinates. The process will continue, unendingly, until the business reaches as many distributors as it has customers. In this article, we’ll show you the unilevel structure from the basics to various examples and understand how an unilevel works.

What is an Unilevel Multi Level Marketing Structure?

The unilevel structure is a popular type of multi-level marketing (MLM) structure, where a company uses a distributor’s recruitment to increase sales at the distributor’s own level.

With the unilevel structure, a company recruits distributors, and these distributors can then sell the products of the company they are selling for to the next level of distributors, and so on, continuously until the end of the line.

Because an unilevel structure recruits distributors from the very beginning, it allows a company to expand from a single location to multiple locations with minimal effort. The number of levels in the structure allows a company to expand at a very rapid rate.

What is an Unilevel Rank?

An unilevel rank is the person at the bottom of your unilevel structure. In the unilevel structure, the rank is the person who recruits the first distributor. This distributor, in turn, can then recruit the second level of distributors, and so on. Depending on the type of business you’re in, you could be the first person your customer meets. This could be an opportunity to earn a sale.

How does an Unilevel Work?

Recruitment – The first thing that happens with an unilevel structure is recruiting. In an unilevel marketing structure, a company will recruit distributors.

It can do this through online marketing, advertising, direct sales, or other means. Once the company has recruited a distributor, it can begin training the new distributor and setting up a sales channel.

Training – Once a distributor is recruited, the company can take them through a series of training courses to help them grow their business. This can include training on how to properly sell the product, how to train others, building a sales channel, etc.

Sales Channel – Once the training is complete, the distributor is ready to sell the company’s products. The distributor should set up a sales channel with other distributors. The distributor can use the channel to help build their sales and create a recurring income.

Pros and Cons of an Unilevel Marketing

– Pros:

• Easy to start and maintain.
• Great for busy people.
• Peoples recruitment is not a one-off effort.
• People will take advantage of their training opportunities.
• Quicker than a one-on-one business.

– Cons:

• Not as scalable as a one-on-one business.
• Distributors tend to burn out from commissions.
• Not as good at making money as other business models.

FAQ

What is an MLM?

Multi-level marketing is a sales strategy in which individuals are paid a commission for every sale made by their recruits. Individuals work as independent contractors, independent business owners, distributors, or direct salespeople for a company.

They are assigned to sell the company’s products or services in person or online. Once they reach a certain threshold of sales, they receive a check from the company. But how do these people make money?

What is the strategy of an MLM?

Multi-level marketing is a sales strategy that is different from traditional marketing. Traditional marketing involves a longer supply chain – from the manufacturer to the wholesaler, and finally to the retailer, who sells the product to the end user.

Multi-level marketing companies bypass the entire supply chain and pass along the cost savings to the customer. Companies promote their products or services through various forms of media, and recruits also do the same. They also hold aggressive recruitment drives.

Many people are skeptical about the effectiveness of this type of marketing, but it is worth a try. The multi-level business model is based on multiplying sales efforts and providing incentives to recruits.

This is a good way to earn more money in the long run. Although multi-level marketing requires less initial investment than traditional business, the benefits of multi-level marketing are considerable.

What is an MLM compensation plan?

The compensation plan of a multi-level marketing program lists how distributors earn money. It also indicates the changes in compensation with increasing sales volume and recruiting new partners. Reputable companies make their compensation plans available to their employees.

The compensation plan is set in detail and transparent for all participants. Distributors earn income from the sales of their downlines. And if they recruit more distributors, their compensation increases.

And all this happens without the need to make any product or service or with an initial purchase of a set of products to re-sell to a sponsored downline.

Why some people refers to MLM as pyramid schemes?

Beware of pyramid schemes disguised as Multi-Level Marketing Programs: If you sign up for a pyramid scheme disguised as a multi-level marketing program, you’re exposing yourself to criminal charges.

The vast majority of people who sign up for pyramid schemes lose money. In reality, the money paid by these investors to the few people at the top of the pyramid are not proportional to the amount of money each member makes.

Typically, the product is expensive and unsellable, so the pyramid promoters’ rewards are not proportional to the success of the company. Nevertheless, the Pyramid scheme scam can be identified and avoided by doing some research.

A pyramid scheme’s key characteristic is its lack of a tangible product or service. It essentially works in a pyramid structure, where the new members join at the bottom and those at the top make the most of the money. The most common types of pyramid schemes are Ponzi schemes (named after Charles Ponzi, a man who enacted his own scheme in 1919). However, multi-level marketing programs are legitimate businesses.

But you should keep in mind that you should always do your due diligence and research both the company who provides your product or services and make sure that they are actually doing the right thing and there is no wrongdoing (a quick Google search it’s all you need).

Unfortunately there has been and probably always be some multi-level marketing programs that are indeed pyramid schemes in disguise.

Who benefits from the MLM rewards?
The Right MLM Rewards Salespeople. If you’re looking for a full-time business opportunity, multilevel marketing is a great fit. Multilevel marketing requires full-time hours and effort, but it can also be a part-time gig.

Most salespeople join a multilevel marketing program part-time for the discounts and extra cash it can provide. And while you can make extra money in your spare time, you should consider the multilevel marketing rewards below to maximize your earnings.

Often, multi-level marketing companies use branded promotional items to encourage newcomers to join their sales force. These branded items become an extension of the salesperson’s personal identity, which can unite the group.

Moreover, these items also encourage the salespeople to recruit new people, further strengthening the company’s brand. This way, the sales force can feel more loyal to the company. And it’ll be easier to recruit new salespeople if they can receive branded items.

In multi-level marketing, the salespeople are independent and non-salaried distributors who have the authority to sell the company’s products. As distributors, they are paid a commission based on the sales volume of their partners.

This is often the only source of income for these people, and so they are not subject to the same financial risks as salespeople in more traditional direct sales positions. This type of work also involves higher entrepreneurial risks than in conventional direct selling jobs, as the salesperson is usually paid on commissions rather than wages.

Is an MLM a viable full-time business opportunity?
If you have been wondering if Multi Level Marketing is a viable full-time business opportunity, here are some reasons why you should consider it. First, it gives you the opportunity to potentially earn an unlimited income. The income generated from multi-level marketing can be used to pay bills, pay for home improvements, or travel. Second, you can start your business with little start-up costs. And third, it is a very flexible work schedule.

In order to make money with multilevel marketing, you must be willing to dedicate a large portion of your time. Most salespeople do it part-time, because they need a side job and they are looking for a way to supplement their income.

However, you can become successful by putting in a full-time effort. You can work from home and set your own hours. You can also make your own schedule. The amount of time you invest in your business is the key factor in its success or failure.

What do I have to do as due diligence prior to start with an MLM?
There are reputable and legitimate multilevel marketing companies, but you need to do your research first. Make sure that you know the amount of money you will have to invest before joining. Then, determine the return on investment (ROI). Remember that multilevel marketing is more about recruiting and sales than it is about marketing. If you’re interested in being a salesperson, then MLM might be a good option.

Our System made with Google Sheet is available FREE

HOW TO USE

The system we have created is quite simple. All the formulas are already added and therefore you do not have to worry at all about calculating the profit axes on sales etc.

In the Settings sheet you can change:

• The names of the ranks
• The commission on the sale per rank
• The names of the products to be sold
• The price of the products
• The abbreviations for ranks

Changes made on the “Settings” sheet will be applied to the whole system immediately.

Use the “Payout” sheet to see a report of payments to be made at the end of the month. This sheet is synchronized with the rest of the system, therefore you should not make any changes here because otherwise you would cancel the formulas already entered.

Finally, use the sheet of the month to enter all the sales of your collaborators.

The important cells in the sheet of the month also have notes to help you understand what they are or what they do.

Also in the sheet of the month there are two important functions:

1. The red “Reset” button that once pressed (you have to accept the use of macros) deletes all sales from the sheet and brings it back to zero. This function is very useful if you realize that you have made such mistakes that you prefer to start from scratch.
2. The light blue “Copy” button which has the function of creating a new sheet for the next month automatically (with zero digits and therefore ready to use once you change the name of the month in the tab)

Finally, just under the buttons, you can customize the system by adding your logo and your business details. This can be useful if you are distributing your system to collaborators and affiliates.

NOTE:
This system is intended as a starting point and is certainly not finished software. From here you can make any changes you want so that it can adapt to your needs.

Conclusion

If you’re looking for an easy way to expand your business, the unilevel marketing structure could be for you. You only have to recruit new distributors and help them grow their business. However, this means that you must be able to help people grow both their businesses and their success in other ways as well. With the right guidance and training, you could turn this opportunity into a profitable business. Here is also a link to a good explanation on how the Unilevel MLM System works