What is the Matrix MLM plan, and How does it work?
With the growing interest in Direct selling, companies can benefit from implementing the Matrix MLM plan. It provides structured growth and a collaborative environment that profits the company and its network marketing members. Let us delve deep into the intricacies of the Matrix MLM plan and unravel its mysteries.
Direct selling is the latest buzzword for companies that want to provide a more personalized shopping experience. Many companies are adopting the Matrix MLM plan to expand their direct selling network for its simplified and structured approach.
It is perfect for organizations that want to start small and scale as it grows. The limited structure allows companies to control the growth of their marketing network and restrict the flow of resources.
What is the Matrix MLM plan?
Matrix MLM plan is a popular network marketing plan where members are arranged in predetermined fixed positions. It is also commonly called the Forced Matrix plan. The network forms a pyramid structure, where members increase at each level.
A Matrix MLM plan helps companies grow their marketing network strategically. The structure puts focus on distributors to recruit actively and help grow the network. They are also responsible for training and supporting their downlines. This way, the recruits get the support and motivation they need to perform well and contribute to the company’s overall success.
How does the MLM Matrix Plan work?
The Matrix MLM plan is also known as the Forced Matrix plan MLM. This is because there is a limit to the number of members that can join at each level. It ensures a streamlined flow of inventory and commissions across the network.
The Matrix plan MLM works by following a predetermined set of positions at each level. It is generally derived from the formula Width x Depth, known as the matrix method.
Typically, the matrix method in MLM defines how members are placed in a network. The first number represents the width of the network or the number of members in the first level. The second number represents the depth or the levels in the matrix.
Let us understand the Concept of the 3x2 Matrix structure more easily with the below illustration:-
- Distributor A employs the 3X2 matrix structure for the company’s marketing network. Here, 3 is the number of members each member can sponsor, and the network will have a total of two levels.
- Distributors A1, A2, and A3 join the network.
- Each distributor has three positions to fill in their downline. It means there are nine positions to fill in the first level.
- Distributor A1 makes three recruits, B1, B2, and B3. They are placed directly below A1 and become his downlines.
- Subsequently, Distributor A2 recruits B4, B5, and B6, and Distributor A3 recruits B7, B8, and B9. The new members are placed directly below their sponsors.
- All nine new members are placed on level 1 of the matrix.
- These nine members further recruit three members each in their downline. These form Level Two of the matrix. The matrix gets completed when all the positions are filled.
What are spillovers in a Matrix MLM plan?
Spillovers are quite an essential part of the Matrix MLM plan. A spillover happens when a distributor sponsors a new member to join the network. However, they cannot be placed in the direct downline of the distributor since it is already full. Therefore, they are placed in the next available position in the network.
The above image represents a 3 x 2 matrix. It means that each member gets three positions to fill in their downline.
1) Here, the direct downline of Distributor A1, Level 1, is filled with members B1, B2, and B3
2) Furthermore, Member B1 sponsors C1, C2, and C3. Member B2 sponsors C4, C5 and C6. Member B3 sponsors C7 and C8, leaving one empty position in Level 2, under B3.
3) Therefore, a new member sponsored by A1 will be placed in the next available position, which is under B3.
4) Spillover provides members with an opportunity to complete their recruitment goals with the help of their uplines. Here, Member B3 fills his part of the matrix through a spillover from Distributor A1.
Different scenarios in the Matrix Spillover
Every MLM company that employs the Matrix structure for their Marketing network may have some preferences when it comes to placing new joiners in the genealogy tree.
The most common way of placing spillovers is from Left to right. When multiple positions are empty in Level 3, the system will place the new member in the next available position to the left.
Here are a few different scenarios that may arise while placing new members in the Matrix network.
1) When the sponsor and the parent of the downline are the same.
In the above scenario, Distributor A1 sponsors B1. Further, B1 introduces two new members into the network, C1 and C2. Here, C1 and C2 both are the direct downlines of B1.
2) When the Sponsor and the parent are different.
In the above scenario, Distributor A1 introduces a new member C2 into the network. However, C2 cannot be placed directly under A1. Therefore, the system places C2 in the next available position from the left, under B1.
Here the sponsor and the parent of C2 are different. Since Distributor A1 introduces C2 into the network, he becomes the sponsor of C2. As C2 is placed under B1, he becomes the parent of C2.
Why MLM business should opt for a Matrix MLM plan?
The Matrix plan in network marketing allows organizations to have a structured network marketing team. They can also simplify management and encourage quality recruitment by limiting the number of marketing network members.
Not just the organization, distributors who join the Matrix MLM plan also benefit from it. A limited number of distributors means less competition and the possibility of earning higher commissions and bonuses.
The reasons why MLM business should opt for a Matrix MLM plan are:-
1) The Matrix MLM plan allows companies to maintain a sustainable business model, allowing for strategic growth as the company grows.
2) The Matrix MLM structure provides distributors with higher earning potential through spillover.
3) The limited number of members in the network fosters team collaboration. Distributors can provide the necessary training and support to each downline member.
4) The Matrix MLM plan provides structured payouts to distributors. A limited network makes commissions and bonus calculations easy and more transparent.
5) The narrow Matrix structure allows for faster cycling. Cycling means the time distributors take to complete a matrix and receive relevant bonuses. With fewer positions, distributors can achieve their recruitment goals faster and become eligible for bonuses.
What are the various Commissions/Bonuses in the matrix MLM plan?
The Matrix pay plan provides network members with multiple avenues to earn commissions and bonuses. Apart from commissions on their personal sales, distributors also receive a percentage of commissions on sales made by their downlines. This trend continues in the further downlines as well. Members of the Matrix MLM also receive extra bonuses when they fulfill criteria set by the company.
Members in the Matrix MLM plan can earn different types of commissions and bonuses. Some of them are :-
1) Sponsor Bonus:- Members receive a sponsor bonus when they recruit a direct downline member.
2) Level Bonus:- Members receive a level bonus when all the positions in their level are filled. This bonus is slightly similar to the sponsor bonus in some ways.
3) Matching Bonus:- Distributors receive a matching bonus when their sponsored downline members make a sale.
4) Forced Matrix Bonus:- All matrix members receive a Forced Matrix bonus when all the available positions are filled and the matrix is complete.
5) Rank Bonus:- Members receive a one-time rank bonus when they achieve a specific rank within the MLM matrix network. The amount usually depends on the rank achieved.
6) Infinity Bonus:- Distributors who achieve specific milestones or levels within the matrix are eligible for an infinity bonus. Distributors who are long associated with the MLM business receive this reward. When they build a strong network marketing team, they enjoy commissions on their downline member sales indefinitely without any caps and limitations.
What is Matrix Plan MLM software?
The Matrix MLM software is a powerful tool that helps MLM businesses implement the Matrix MLM plan in their marketing network. This revolutionary tool empowers businesses with its advanced tools and automation, providing a seamless transition from the traditional to the automated way of managing an MLM network.
A comprehensive tool that provides your business with accurate reports and precise commission calculations can add value to your business. Get the latest Matrix MLM software from Global MLM to help redefine efficiency and help improve the profitability of your Network Marketing business.
FAQs
1) How does the Matrix plan differ from other compensation plans?
The Matrix plan differs from other compensation plans as it has a predetermined width and depth. It also provides spillover benefits to its network members.
2) Can a distributor have multiple positions in the same matrix?
Generally, distributors in a Forced Matrix MLM plan are not allowed to hold multiple positions. They will remain at the same level of the matrix for as long as they are a part of that particular organization.
3) What happens when a sponsor drops out of a Matrix?
When a sponsor or a network member drops out of a matrix, it leaves a hole. The distributor then fills this hole by promoting a downline member to that position or recruiting a new member based on company regulations.
