The single leg compensation structure works on a first-come-first-serve basis.
In this, you get rewarded for the sales generated by you and for the sales generated by the promoters in your downline. You get a certain percentage as commission from their sales amount.
Although there are no mandatory rules, some companies have certain conditions to be fulfilled before you can start forming your lineage.
Let’s say, you are on the top of the chain. You will get automatically paid for every member below you irrespective of whether they are referred by you or are a spillover.
However, some company decides to make it a requirement to sponsor at least 2 individuals before you start getting paid.
In such cases, you get a slightly higher percentage of their earnings than the rest of the downline.
This is known as a forced matrix MLM plan where a particular number of slots is mandatory to be filled before you start earning.
Let me explain this to you with an example.
Instead of building your own legs in the downline, the whole company is a single-leg. All the newly joined distributors are placed in the same line.
After you become a representative of a company, all the other people who join after you will be in your downline.
Now the company has this policy that only after you have hired 3 representatives of your own, you will start getting 10 percent of their earnings. And for the rest of everyone in the downline (which you didn’t hire personally), you will get 5 percent of their sales value.
This is the basic compensation structure of any single leg MLM plan. However, it may differ from company to company on different levels.