WHAT IS MATRIX MLM COMPENSATION PLAN?
The Matrix MLM Compensation Plan comes under the category of MLM compensation plans. This is also known as Forced Matrix Plan. This is based on a compensation structure which consist of a certain width and depth. It is represented by the formula width * depth.
A prospective setback of the Matrix Plan or Forced Matrix Plan is that usually the amount of income compensated on each level varies. Therefore, there is more motivation for suppliers to help some stages of their network but not others. Furthermore, some programs are quite extensive and may need you to complete 6 or more front line roles before helping your front line to create their company. Another disadvantage to the varying percentage rate is while it does provide some rewards it can be difficult to describe to customers. You could have the best company in the world, but if the settlement plan is too difficult to describe or comprehend it can make it very difficult to turn customers.
- HOW IT WORKS?
While compared to other MLM Plans, The matrix MLM compensation plan is entirely different. Let's use the 3 x 7 matrix as an example for today: you are on top, and have 3 on your front line. Your second level is 9, third 27, and eventually your seventh level is about 2,187. If filled up, your entire organization will compensate you for a total of only 3,279 people. Many of the top leaders in this industry have organizations of tens or hundreds of times larger than this. This is literally a case of converting an unlimited opportunity into a limited income position. The matrix MLM compensation plan possesses limited width.
Although there exist many variations to this such as Forced Matrix compensation plan there is a basic concept of the matrix plan which remains the same. The distributors must help their down line members in the growth of their organization because there is the limited width of Matrix MLM software compensation plan. In the Matrix MLM compensation plan when the front line becomes full, the distributors have to sponsor new recruits deeper into their down line. Consequently, these new distributors are placed in the next available position. As time advanced the plans have been advanced to allow the distributors to decide where they want to position these new distributors. These modifications made this structure more attractive.It gives distributors more control over their business and it increases the amount of teamwork.