The matrix plan, also known as the forced matrix plan or the ladder plan is a well known MLM compensation plan that is similar to the pyramid. In this plan, the members are organized in a specific depth and width and they are compensated while they get a set level. Besides, here in this plan, the members who join get compensated after while they recruit some new members as per the level decided by the MLM plan.
In this plan, the MLM company can set a structure for the members to become certified to a specific level that can be 5 in depth and 3 in width. In the other words, one member in this plan can earn the compensation up to the 5th level and a distributor can only introduce 3 as the front-line.
For an example, a 4 X 4 group means there are four people on the frontline level and they pay four levels deep. Some other examples would be a 9 X 9, 5 X 5 etc. This plan is really simple and also really easy to identify with and explain. The low volume requirements are quite common to the matrix plan and this thing also makes this plan really great for the part time distributors.
The main features of this plan are:
- Here the members can get Structured Tree view like 4×5, 3×5, 2×3 etc.
- Here the spill network for any member can be viewed easily
- In this plan one can get effective downline management as here the members are allowed to analyze the Directs
- This plan includes Genealogical Tree Structure where both the occupied positions and the vacant positions are denoted by various colors for easy comprehension.
According to this plan, the width is really limited and as a result, the members can motivate the downline members to earn more profit. So, the members can allow conducting the width up to a certain limit as well as the new recruits would be positioned under any of the downline in the depth.
The MLM companies can make some smarter Forced Matrix Plan by enhancing the depth for the compensation and the bonuses. Some of the MLM companies can also decrease the width of the compensation and the bonuses. So, it can be said the matrix MLM compensation plan has a great potential for both the old and the new members as well.
The main benefits of the matrix MLM compensation plan are:
- The compensation plan can be incorporated in the customized matrix MLM plan
- The MLM matrix plan is really easy to understand and this plan also explains the concept of all the MLM plans. Thus, the representatives and the networkers of the MLM companies can motivate the downline easily
- While the downline works upline, it gets the benefits as per the levels. The main aim behind it is so that the upline can inspire the downline to grow the network
- The matrix MLM plan is enough flexible through which the MLM company can extend the width of the matrix tree as per the compensation plan.