What is Monoline Plan ?

Monoline plan is one of the popular plans in MLM industry which is running successfully until now with minor modification that suits company’s taste. Like any other plans in MLM it has different names too, like single leg plan, linear plan, straight line plan etc. Because of its structure, this plan is one of the simplest and pretty transparent plan which makes it easy to understand.

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How Monoline plan works ?

Monoline plan is basically 1*n matrix plan, which allows distributor to sponsor multiple distributors in a single leg so every person recruited in the network, becomes your downline. Although it has unlimited depth, the commission distributors can earn will be up to certain levels which will be decided by the company. It also works as Autopool plan where any new distributor who is joining the network will be placed in one straight line benefitting all the uplines whether they have recruited that distributor or not. Many times, this autopool system can be disadvantageous for the company. To avoid that, company comes up with certain rules for eligibility criteria to distribute compensations so the distributors won’t be inactive. For example, company has decided that first 70 distributors in entire network will be counted as level 1, after that distributor has to recruit 5 new distributors into the network to be eligible for level 2 incomes. In this way company can continue gaining new sales and it will help both distributors and the company.

Types of Income in Monoline Plan

  • Direct Referral Bonus/ Direct Sponsor income

    Same as any other MLM plan, Direct Referral income encourages distributors to recruit new distributor in the downline and get benefited. How much commission they will get for recruiting new distributor in the network will be decided by the company.

  • Level Income

    Distributors have to recruit certain number of distributors in the network directly or indirectly via network which will be counted as level 1. After distributors complete levels decided by the company, they will earn commission which is called level income. As per our example, when distributors will complete their 1st level by recruiting 70 distributors they will earn 1000/- INR as level income.

  • Rank achievement income

    When distributors achieve the ranks after fulfilling certain criteria set by company, they will be eligible for rank achievement income. The base of the criteria varies from company to company. For example, it can be number of direct sponsors distributor have or number of level commissions distributor has earned. In this income company will give additional money to the qualified rank holders for achieving ranks. In our example, if distributor has earned 2 levels (Level 1 & 2) commissions he/she will have rank named pearl and will be eligible for extra 1000/- INR.

  • Royalty Income

    Company puts aside some percentage of their turnover and distributes them equally among all the qualified distributors as royalty income. The qualification criteria will be decided by the company. For example, it can be decided based on the rank distributor is holding.

  • Rewards

    Rewards are additional bonuses that company announces when they want to raise team moral. Company provides this additional bonus when distributors will finish certain task set by company in certain period of time (fixed or variable), as a reward. It will be either in cash or in kind decided by the company.

Advantages of Monoline Plan

  • One of the advantages that you can see from first glance will be this plan’s simplicity.

  • Time of joining plays very important part in this plan. If you are one of the top leaders, it will benefit you tremendously as compared to those who started little late.

  • It is non-working plan. So distributors can earn commission even if they are not working.

  • It is an attractive plan for distributors as compared to other MLM plans as they can earn commission without working.

Disadvantages of Monoline Plan

  • It is non-working plan. So company needs to set some criteria or use other form of motivation for distributors to keep them active.

  • It is not legal as per direct selling guidelines because commission is being distributed based on not only sales but also enrolment.

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