MLM MATRIX PLAN

Introduction

The matrix mlm compensation plan or forced matrix compensation plan is one of the commonly used plan in the mlm industry. This plan is popular for its unique characteristic that is limited width. The only distinguishing feature of this plan is therefore its limited width.

How Matrix plan WorksThe Compensation plan is denoted by 3x5, 5x7 in this plan. The 3x5-matrix compensation plan denotes that you can recruit up to three distributor in your direct downline & your organization can go down to five level deep. On the other hand, you can say that you have a maximum of three distributors at your first level, nine at second level, twenty seven at third level and so on right up to the fifth level. As there is a limitation on the number of distributors at any given level, so once a particular level fills, any new recruit will spill over to the next available position irrespective of level.

Advantages of Matrix Plan

There are two advantages of mlm matrix compensation plan, they are namely:

• The potential for spillover

• The possibility of having more than one sponsor

The Potential of SpilloverThe potential for spillover is the most exaggerated of the two advantages. When recruiting, distributors often promise their prospects massive amounts of spillover. Statements such as 'I will build your downline' are common in opportunities using the matrix plan.

These kind of promises often create a major disadvantage in the matrix plan, namely, that people will sign up having a false belief that all they need to do is signing up and their downlines will be built.

If you promise your prospects that you or someone else will build their downline, you might be setting up yourself for major problems later.

The myth behind spillover is that you will benefit from upline activity, and that your downline will also benefit from upline activity.

The potential to have more than one sponsor

Your sponsor is the person who introduced you to the network marketing opportunity or the person in whose downline you fall directly.Because of spill over, you will not necessarily be in the direct downline of the person who introduced you. You may be placed in a direct downline of another distributor.The benefit of having two sponsors is that, if both sponsors are active and excellent trainers, you may gain a lot from their experience.

Disadvantages of Matrix Plan

There are two misconceptions about the matrix plan

• Downlines grow faster

• Distributors will remain motivated

Downlines grow fasterThe reason behind this is that since you are forced to have only a limited number of distributors on your first level, those distributors you recruit beyond the given number will be placed in your second level until that too is filled. In addition, you will receive new distributors from the upline. However, it may not necessarily be as simple as that because building of a downline is mainly dependent on the type of matrix plan the company has adopted.

Distributors will remain motivated

People are not necessarily motivated by freebies, i.e. spill over distributors in the case of matrix plans. The opposite may actually happen. Some people will join your organization expecting to have their downlines built by others. Promises such as "Join my team and I will build your downline" can be a recipe for disaster for the matrix plan mlm business.

ConclusionWhether the matrix plan is for you or not, is for you to determine. Do note that like other networking marketing compensation plans, the matrix will not necessarily work well in all situations. To make the matrix compensation plan successful you need to use a well-defined mlm software solution along with avoiding the disadvantages of matrix plan mlm business.

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