Matrix MLM plan, or forced matrix plan, has a predetermined precise and clear organizational structure. The clarity of the depth and width makes the plan unique from the other compensation plans.
The matrix plan process is easy to manage and operate and helps create teambuilding in the organization. “unlimited opportunity to a limited income position,” Matrix plan works in this motto. It can be beneficial from a direct selling company’s perspective.
Matrix compensation plan appears as a pyramid structure with fixed width and depth and is represented by the formulae Width*Depth. In the matrix plan, the number of distributors you can sponsor in the first level is fixed or restricted. The structure of the matrix plan limits the expansion in width and encourages to sponsor of more people in the downline to increase the depth.
In the case of a 5*2 matrix tree, 5 is the width of the tree, and 2 is the depth of the tree. In the matrix plan, the width is limited; therefore, once the five positions in the first level are completed, the members that come after that are placed in the next level. According to the matrix 5*2 second level consist of 25 members and third level consist of 125 members . As this goes on, there will be one member as the sponsor and five members in the first and 25 members in the second level . By this, the 5*2 matrix cycle is completed. This process is carried on.
Due to the restriction in width, the distributors are forced to add the members to the downlines from the 2nd level’s wards. This process is why the Matrix MLM plan also gets the name Forced matrix plan.
The filling of distributors from the 2nd level and down is known as Spillover. In the process of Spillover, once the first frontline positions are filled, the members fill up the next positions under the first level based on the available positions. Multiple spilling preferences used in the Matrix plans are:
The default spillover process orders the filling of available positions from left to right or top to bottom accordingly.
The spilling is done in alternative positions as the first level is completed.
sponsor preference provides the owner with the privilege to place members as required in the process of Spillover.
The matrix plan can be combined with various other compensation plans to create a hybrid matrix plan that can increase the MLM business’s efficiency.
The sponsors achieve this bonus by adding a new member to the matrix network tree.
Each level of the matrix tree has a different compensation bonus set for the level. Once a level is completed, the level completion bonus is received.
For bonuses achieved by downline members, their sponsors also receive a percentage called a matching bonus.
If a distributor completes one matrix cycle. They receive a matrix completion bonus.
The position bonus is similar to the sponsor bonus achieved when new members join the matrix network.
The Matrix plan pays highly promotes and aids in increasing group sales.
The matrix plan provides an unlimited business opportunities.
The compensation becomes more beneficial with more opportunities as the plan goes deeper.
once the frontline is filled, the whole business becomes more active and purposeful.