DIRSL: Powering Direct Sales
Knowledge base
Compensation plans

Choosing between Unilevel and Generation

Two level-based plans that reward different behaviours. Which fits your company?

6 min read

They look similar

Both plans have unlimited width and pay through the downline. The difference is how depth is counted. Unilevel pays on levels: everyone one position below you is level 1, two below is level 2. Generation pays on generations: a generation starts at each person who holds a qualifying rank, regardless of how many levels sit between.

Unilevel rewards breadth and simplicity

Because levels are fixed, income is predictable and easy to explain. New distributors understand it in a minute. The weakness is that a leader deep in your organisation falls outside your paid levels, so you have little incentive to develop them.

Generation rewards leadership

In a generation plan, when someone in your downline reaches, say, Director, their whole group becomes a generation and you earn an override on it. Developing leaders directly increases your income. The weakness is complexity, and the possibility that a very deep generation becomes expensive, which is why generation plans include payout caps.

Decision guide

If you…Choose
Sell low-ticket consumables with many casual sellersUnilevel
Have a leadership culture and high-ticket productsGeneration
Need the simplest possible explanationUnilevel
Want to pay leaders for building leadersGeneration
Are unsureUnilevel now, add generation overrides later

Hybrid option

Many mature companies run unilevel for the first five levels and generation overrides beyond. DIRSL supports this as a single hybrid plan with separate caps for each component, so you can start simple and add leadership rewards as your organisation matures.

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