Matrix MLM Compensation Plan is one of the most prominent and widely used compensation plans. After binary MLM compensation plan, most of the companies prefer Matrix MLM compensation plan. Matrix MLM compensation plan can be customized as per the needs of one business in the multilevel marketing industry.
Structure and working of Matrix MLM compensation plan:
Matrix MLM compensation plan is also known as the forced matrix or ladder matrix MLM compensation. The network increases or grows towards width x height in this matrix MLM compensation plan, which may be denoted as (WxH or MxN). Unlike other MLM compensation plans. Furthermore, we can say that the Matrix MLM plan rapidly expands the depth of its network. And another common term that is most popular said in the Matrix MLM plan is the width x height (WxH) of the matrix MLM plan is already fixed.
The fixed width and depth of the matrix MLM compensation plan, often known as the “fixed matrix” MLM compensation plan. Although the WxH is fixed in the Matrix MLM compensation plan, the customization option is available before defining the WxH. When the width x height of a matrix MLM compensation plan is defined or set once, it cannot be changed or customized again. The common WxH in matrix MLM compensation plans are 3×3, 3×7, 3X9, 2X12, 4X7, and 5X7. Also, the Matrix Plan limits the width of the downline more than the depth, encouraging them to hire more individuals.
As a result, maintaining the Matrix MLM plan is simple. The 3×3 Matrix MLM Plan denotes that the network can scale up to three levels, each with three members.
How does the matrix MLM plan work with Example?
Let us Consider a 3×5 Matrix MLM plan:
- First of all, lets us assume A is the sponsor of this 3×5 Matrix plan.
- This plan consists of width (size) 3 and 5 levels (height), which means each member in each level should hire 3 new members in their downline.
- Initially, at the first level, sponsor A will hire three new members B, C, D to his downline.
- At all levels, the newly hired Members should be placed from left to the right. Thus after placing their new members below sponsor a, level one is completed.
- Next, we can move to the second level.
- In the second level, sponsor a hired members – B, C, D each of them should hire three new members in their downline.
- If member B is going to hire two new members to his downline. The position below him is the second level. And the members should be place or position from the left to right.
- If B already hired three downline members B1, B2, B3.
- And, If B wanted to hire B4.
- The fourth member B4 will be a spillover.
- B4 will be placed in the next level (available position), from the left to the right side of the network.
- And B4 is the first member of the third level.
- Likewise, Each B1, B2, B3 member can hire up to their new individuals below them as a downline.
- Suppose, if B4 is sponsored by A. Then, the B4 member will be placed (left to right) in the next available position.
- Suppose, if both B and C have already hired 3 members below them. And D has hired only one member.
- Then, A sponsored member B4 will be placed (left to right) in the next available position which is below D. As a D’s second downline member.
- In that case, if this continues, if a sponsors another member X. This member will be placed next to the B4 members as a D’s third downline.
- After this step, if A sponsors another member. That member will be placed (left to right) in the next available position.
- As a result, the network grows to five levels. After the fifth level is completed.
This 3×5 matrix plan is satisfied or filled.
Spillover in Matrix MLM Compensation Plan:
The width of a matrix MLM plan is limited, but the depth is unlimited. The network downline has a limited number of members due to the limited width. Members of the matrix MLM plan are encouraged to recruit new members to their network. As a result, the matrix MLM plan’s payouts and downline growth can be increased.
When new members are hired, they usually fill in the network in a sequence in which they were hired. In a 3 x 5 matrix arrangement, for example, the first three representatives would fill out the frontline level, with the fourth person “spilling over” to fill out the second level of the downline, and so on. Thus, the matrix MLM compensation plan supports the spillover effect.
The Matrix MLM plan helps you keep track of your downline’s earnings and expenses. It reduces the amount of manual work that MLM companies must perform. The Matrix MLM compensation plan is appropriate for any scale business.
However, there is no restriction that one member can add as many new members to their downline in the network of the matrix. The matrix MLM plan network, however, has a width restriction. The Matrix MLM plan network grows quickly. As a result, each member has significant earning potential. There is an increase in commission if new members are successfully added to the network.