Understanding the Forced Matrix MLM Compensation Plan
MLM is a Business Opportunity not a Job! There is no guaranteed income or success for anyone. It’s like starting any business, it’s like competing in sports, playing the stock market, investing in Real Estate, not everybody wins. MLM is just another way, and many feel it is a better way for many reasons. Leverage, team building, and the opportunity to create residual or passive income being just a few of them.
MLM is not a Miracale Cure for lazy unmotivated people that don’t want to learn how to succeed as a leader and business person. One major problem and complaint is that the Matrix type Plan fosters lazy distributors that don´t produce. This is a great source of frustration for upline producers willing to put real time, effort, and work into their business. If distributors better understand the dynamics of the pay plan first, they will be better able to choose the right opportunity to invest their lives in.
You are going to invest your self, your time, energy, dreams, and resources into building a business.
Are Matrix Plans Pyramid Schemes?
Pyramid Schemes are illegal enterprises. The Matrix may look like a pyramid when it is filled up, but the similarity ands right there.
An easy way to spot a pyramid scheme is there is rarely a legitimate product or service for sale. It´s more of a recruiting game with a buy-in price to be paid. Another clue is there is no payouts unless you successfully recruit a specific number of people into the pyramid. You´re paid on enrollee´s and generally there is no selling or marketing of any products or services necessary.
Matrix Plan Basics …
That is to say that the width on the distributors´ first level of distributors is a set number of people that usually ranges from 2 to 5 people.
As more people enroll, they go under those first level distributors and down a set number of levels until the matrix is filled. If, for example, there were 2 first-level people, there could be 4 people on the second level, and 8 people on the third level, etc. The company promoting the products or services will determine how many levels deep they will pay commissions on.
There is less emphasis on recruiting a large number of people. Limiting the number of frontline distributors causes some important features. Any distributors that you sponsor beyond your first line distributors must by nature be places underneath others in the Matrix.
There is greater focus on helping your downline distributors become successful in retailing, recruiting, duplicating, and retaining new enrollees.
The placing of new distributors under others in the matrix when an upline sponsor of your places new recruits into your business organization is an exciting feature of Matrix MLM Compensation Plan.
Advantages of the Matrix
Matrix Compensation Plans are very attractive to part-timers and novice distributors. The low monthly volume requirements to qualify that often accompany these plans helps it to be a workable plan for both part-timers and the non-sales driven distributor.
Success is more within the reach of Novice and Part-Time distributors who are willing to do some work to achieve it.
Many find recruiting is easier with Forced Matrix Business. Many good forced matrix systems offer a low investment to startup and remain active. Consequently many more people are apt to sign-up quickly when offered the opportunity.
Spillover a feature of the Matrix Plan, can be an attractive lure for novice distributors and part-timers.
Matrix Plans seem to work well in companies where most of the products are used and consumed by the distributors, rather than retailed to outside consumers.
Matrix Compensation Plans by nature promote greater teamwork within an organization.
Disadvantages of the Matrix
Matrix Plans and Spillover often attract lazy Distributors. You may have a bunch of people joining looking for the “easy road” expecting “spillover” to build their business and income for them. This scenario is bad for both upline distributors really working their business, and lazy distributors expecting something substantial for little effort expended.
The number of people required to completely fill a Matrix is huge! Many join with excitement realizing the incredible payout one of these matrixes can provide when filled, but not realizing the 1000´s of people required to fill even a simple 2×14 matrix.
The most money to be made in a MLM Matrix compensation pay plan is in the higher levels where the matrix is widest. Many frustrated distributors will drop out of the business without ever attaining the huge numbers of distributors necessary to reach this income potential.
How do Matrix Plans pay you?
Companies pay you a certain percentage of the product sales for each person in your downline. If your downline has thousands of producing distributors that number can be amazing! However, if your team is only yourself and a handful of new recruits that check may be a very small one. If you´re a “lazy” distributor it can mean none at all.
In a hypothetical 3×7 Matrix, payment on your business organization would pay you to the 7th level and then stop because your matrix would be filled at that point. You get commissions on your seven levels and the sales volume your filled matrix produces and then your potential for income stops there. You don´t get paid on the eight, ninth, tenth levels, etc.
This may be fine for the novice recruiter but not so great a pay off for the professional marketer capable of placing thousnds, even tens of thousands of distributors in an organization.
Because of this many Matrix Plans allow you to rejoin your organization at this point and begin building a new matrix with your new first level line of distributors starting directly underneath your first filled matrix. this is referred to as an Expandable Matrix.
If you´re a real go-getter you could conceivably re-join beneath your first matrix and fill another one all over again, and again, if allowed to by the company.
Smart companies who use Matrix MLM Compensation Plans have added incentives to help professional MLM´ers earn income from the lower levels of their MLM Matrix Plans. Matching bonuses, the addition of a Uni-level plan after certain levels have been reached, and Expandable Matrix Plans are all examples of ways these companies have sought to compensate and attract the “Heavy Hitters” of the industry. You´ll need to consult your specific company pay plan for these details.
Aspects of Matrix Plans you may not be aware of:
As mentioned earlier Matrix MLM Compensation Plans allow for “spillover” to occur. Spillover occurs when someone not enrolled by you in placed in your downline. In a 2×12 matrix, you can only have 2 distributors on your frontline, and so the next distributors that you sponsor naturally “spill over” into the matrix under one of your frontline or further downline distributors. As more distributors are enrolled by your upline they naturally will be placed in the downlines of your team. This is often a large selling point of Matrix MLM Compensation Plans.
Your best bet to capture and capitalize on “spillover” is to join under a “heavy hitter”. They often sponsor huge numbers of distributors, which can spill into your organization and help to build it. Though this is definitely an excellent strategy to assist you in building your organization, it should never be counted on as your primary means to build an organization. Every frowns upon lazy distributorship.
To be a major beneficiary of “spillover” you have to be in the right place under an upline sponsor who is doing some mega recruiting. The chances for most people to experience this is slim. However, it can be a very helpful aspect for someone who is serious about building a large and successful organization.
Is a Matrix the Best Plan for you?
Every marketer´s abilities and goals vary greatly. Plans are like personalities, some are better suited than others for a particular person, their experience level, skills, and situation. So trying to recommend a one size fits all solution is an unrealistic proposition.
You should do your homework on any particular plan you may be considering first, and you should take some time to access your goals and abilities before you decide. You should seek out third party information about exactly what it is going to take to be successful in this industry before you join any specific opportunity or MLM as an industry.