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what is the difference between single level and multilevel compensation plans which are used for the consultants?

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what is the difference between single level and multilevel compensation plans which are used for the consultants?

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Single level compensation plan means a representative/distributor is compensated based solely on one’s own product sales. In a multilevel compensation plan, representatives/distributors are compensated based not only on one’s own product sales, but on the product sales of one’s down-line. How many Direct Sales companies are there to choose from? It is impossible to estimate the number of direct selling companies operating at any given time. This is a result of several factors. First, most states do not require direct selling companies to register as such. Therefore, no exhaustive list exists. Second, as with any business, many direct selling companies do not thrive in the direct selling market and have a relatively short life span. In fact, many companies may even come and go before they could even be “counted.” However, the Direct Sales Association estimates that the sales made by its members account for about 90 percent of all Direct Sales in the United States.

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