If you have knowledge on Multi level Marketing, then you must have knowledge on different compensation plans. Because compensation plans are the backbone of any MLM Company.
Matrix MLM plan is one among them which has captivated the attention of entrepreneurs and aspiring network marketers alike. With its unique approach to team building and earning potential, the matrix mlm plan offers a dynamic opportunity for individuals seeking financial independence and residual income streams. And the best part? you can have Matrix MLM Software to streamline all the matrix plan types,commissions and bonuses, etc.
But what exactly is a matrix mlm plan, and what are the different types?
So, what are you waiting for? Come, let’s embark on a journey through the multifaceted landscape of Matrix MLM, where networks intersect, commissions flourish, and dreams are transformed into reality.
What is Matrix MLM Plan?
The Matrix MLM Plan also known as Forced Matrix MLM Plan stands out as a highly effective compensation plan that effectively combines individual growth with team support. Achieving a suitable balance between width (row) and depth (column), the payout structure ensures this equilibrium effortlessly. This plan is represented by Width * Depth. Unlike Binary MLM Plan, Matrix MLM plan can have as many downlines as per their width and depth.The most common matrix types are 3×7, 4×7, 5×7, 3×9, and 2×12. Now, let’s take a closer look at smaller ones: 2×2, 3×3, 3×2, and 5×7 matrix plans.Terms Related to Matrix MLM Plan:
- Sponsor : A sponsor refers to an individual who recruits new members into a MLM company and supports and mentors them in building their own MLM business.
- Distributor:A distributor refers to an individual or entity that participates in the MLM business by selling products or services offered by the MLM company.
- Spillover:The process of adding new members to the next available positions on the tree, once the frontline is filled is spillover.
- Compensation:The structure through which distributors are rewarded for their sales efforts and the sales efforts of their downline members.
- Cycling: It refers to the process of completing a matrix and earning the associated commission or bonus. Once a member earns a commission from completing a matrix, they can start a new matrix and continue recruiting new members.
Unveiling the Different Types of Matrix MLM Plans
The 2×2 Matrix MLM Plan
In a 2×2 matrix MLM plan, each member can sponsor only two frontline distributors or members. The structure is represented by a 2×2 matrix.Here’s how the 2×2 Matrix MLM Plan works
In this plan each level contains a maximum of two positions, hence the term “2×2”. The sponsor occupies the top position and recruits two new members into their level one. Each of these level one members then recruits two more members into their level two, resulting in a total of six positions in the matrix (2×2). The primary objective of any plan is to recruit new members. Here, each sponsor aims to fill their level one and level two positions by personally recruiting two members. This process continues as the matrix grows, with each member aiming to fill their positions. Any additional recruits beyond the first two are “spillover” and are placed under other members in the matrix. This spillover helps to fill the downline positions of other members who have not yet filled their Level 1 positions. In this structure, each member in Level 1 can have two frontline positions in Level 2.The 3×2 Matrix MLM Plan
The 3×2 Matrix MLM Plan is an expansion of the 2×2 Matrix Plan, providing a deeper level of structure and potential earnings. Let’s explore the details of the 3×2 Matrix MLM Plan: The plan is called “3×2” because it consists of a 3-level structure. Each level contains a maximum of three positions. This structure is represented by a matrix or a table with three rows and two columns. Here the matrix contains only 2 levels.Here’s how the 3×2 Matrix MLM Plan works
A sponsor can recruit 3 distributors for level one. Each of these level one members then recruits three more members into their level two, resulting in a total of nine positions in the matrix (3×2). Similar to the 2×2 Matrix MLM Plan, the 3×2 Matrix Plan can also have spillovers. If a sponsor recruits more than three members, the additional recruits can be placed under their level one member or even further down the matrix. Spillover helps accelerate matrix filling and benefits members who may have difficulty recruiting on their own In this structure, each member in Level 1 can have three frontline positions in Level 2.The 3×3 Matrix MLM Plan
Here, each member can sponsor three frontline distributors or members, and the matrix is structured as a 3×3 matrix. However, it also requires more recruiting and effort to fill all the positions in the matrix. The sponsor recruits three new members into their level one. Each of these level one members then recruits three more members into their level two, Similarly, the level two members recruit three members each into their level three, resulting in a total of 39 positions. If a sponsor recruits more than three members, the additional recruits are spilled over to their next level of the matrix. In this structure, each member in Level 1 can have three frontline positions in Level 2, and each member in Level 2 can have three frontline positions in Level 3.5×7 Matrix MLM Plan
The 5×7 Matrix MLM Plan is a more complex structure used in network marketing companies. Let’s explore the details of the 5×7 Matrix MLM Plan. This plan consists of a 7 level structure with a maximum of 5 positions on each level. The sponsor occupies the top position and recruits up to 5 new members into their level one. Each of these level one members then recruits up to 5 more members into their level two, the level two members recruit up to 5 members each into their level three, until level 7 resulting in a wider and deeper matrix. Spillover is an important concept in the 5×7 Matrix MLM Plan. If a sponsor recruits more than five members, the additional recruits can be placed under their downline members. This spillover helps in faster matrix filling and provides support to members who may have difficulty recruiting on their own.Hybrid Matrix MLM Plan
The hybrid matrix MLM plan combines elements from different types of MLM plans, creating a unique and dynamic earning opportunity for network marketers. Let’s consider a matrix MLM plan combined with a hybrid MLM plan. This plan integrates the characteristics of both the binary and forced matrix plans, offering a hybrid system that combines the best of both worlds. In a binary matrix, each member can only have two frontline distributors, creating a binary tree structure. However, the hybrid matrix MLM plan allows for more than two frontline distributors, providing a greater potential for growth and expansion. This flexibility enables members to build wider networks while still benefiting from the depth and spill-over advantages of a traditional matrix MLM plan. Additionally, the hybrid matrix plan incorporates the concept of spillover from the forced matrix model. This feature encourages teamwork and cooperation within the network, as members work together to fill matrix positions and maximize their earning potential. Furthermore, the hybrid matrix MLM plan often includes various bonuses and incentives to motivate distributors and promote active participation. These bonuses can range from fast start bonuses for enrolling new members to leadership bonuses for achieving specific milestones or ranks within the matrix. Such rewards encourage members to strive for excellence and foster a culture of success within the MLM organization.
As always, it’s important to thoroughly understand the compensation plan and terms of any specific MLM opportunity before getting involved, as the details can vary between MLM companies.
Compensation Structure of Matrix MLM Plan
Compensations in matrix MLM plan are the best among all the compensation plans, distributors get rewards for not their efforts but also from the upline’s effort.Sponsor Bonus
The commission earned by adding downline members.Level Commission
Compensation received by upline members when a new member is joined on their downline.Matrix Completion
Bonus received when a distributor completes a matrix.Matching Bonus
Sponsors are paid a commission based on the earnings of the downline distributors they have sponsored.Rank Bonus
Bonus paid to members of matrix MLM plan who achieve a specific rank or level within the matrix.Advantages of Matrix MLM Plan
- Once a member has determined the quantity of frontline associates required, he can focus on creating these associates
- This plan promotes newcomers and aids the company’s long-term growth
- Matrix MLM compensation plan fosters traits such as leadership and initiative among team members
- The fixed structure of the Matrix plan makes it easy to manage each team
- Since it is based on teamwork, this plan contributes to the company’s overall reputation
- It is easier to attract new members since they will undoubtedly receive support from those above them
- The Matrix plan’s spillover function aids in the development of larger, more robust MLM networks
- This MLM plan’s structure is simpler compared to other MLM schemes, making it easier to convey to new members
Disadvantages of Matrix MLM plan
- Teamwork may provide lesser benefits to members on lower levels of the matrix due to the variable pay scale across different levels
- To advance the team to the next level, wider matrices will have to necessitate greater efforts from higher team members
- Prospects may be confused by the changing compensation based on the width and depth of the plan
- If a member from the upper levels quit, it creates an empty space that can’t be filled, impacting everyone’s income above him
- In such a scenario, the efforts invested by other members in developing their leg of the team becomes useless
- As there is a limit to the depth to which a member gets paid, it discourages upper level members to continue working beyond a certain point
- Companies with this plan sometimes get compared to pyramid schemes, which harms the business’s reputation as a whole