Matrix Plan is a pyramid structure arranged into a fixed number of width(row) and depth(column) that restricts the number of distributors you can sponsor on your first level. It is represented by the formula “ width * depth”. Matrix Plan is also known as Forced Matrix MLM Plan or Ladder Plan. Matrix Plan limits the width more when compared to the depth and motivates to hire more members in the downline.
Let us consider a 3*2 matrix MLM plan, where 3 is the width and 2 is the depth or height of the matrix. Below shown is the 3*2 matrix.
Width (3) is the maximum distribution allowed in each level of the matrix and height(2) is the number of levels in the matrix. Once the 3 distributors are added to the first level of the matrix, the first level is finished and the new 3 members are added to the next level i.e 2nd level. Here the matrix contains only 2 levels.
Under each member in the first level i.e under 3 members in the first level again 3 members are added to the second level. Altogether there will be 9 members on the second level. Adding distributors to the second level is called a spillover in the Matrix MLM plan. In the 3*2 matrix, the total number of distributors will be 13( Sponsor-1, First level-3, Second level-9=13 members). The matrix 3*2 will be completed once it forms these 13 members.
As the width is restricted in the matrix plan, only 3 members are added in each level and so it is called the forced matrix plan.
Different MLM companies follow different Spillover preferences as per their MLM business strategy.
The different types of spilling preferences are as follows:
The new members are either added from left to right or top to bottom of the matrix according to the available positions in the matrix. This type of spilling is set as default in the matrix plan.
Once the first level is completed by adding 3 members to the matrix, the next new members i.e spillover will occur in the alternate positions in the second level and under the 3 members in the first level.
Example: If a distributor X added 3 members 1,2,3 to the first level of the matrix, then the next members 4,5,6 are added under the first position of members 1,2,3 respectively instead of adding all three members 4,5,6 under member 1.
Similarly, members 7, 8,9 are added under the second position of the members 1,2,3 respectively and the members 10,11,12 are added under the third position of members 1,2,3 respectively.
As per the sponsor preference or the owner privilege, the new members can be added anywhere in the matrix plan.
The matrix plan provides a limited income position from unlimited opportunity.
For example, let us consider the 3*2 matrix. As per the distributor, it is only a 3*2 matrix plan with limited depth. However, for the company, the view will be like3*unlimited height plan. You may think why is it so?
Many distributors exist in the matrix network and the tree will go big when you look at the members above the sponsor. The matrix tree looks small at the distributor’s view but it goes big as per the company’s view. The MLM companies decide the compensations when the distributor completes the matrix cycle
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