Forced Matrix MLM Compensation Plan Review
A Compensation Plan should be run through the same kind of evaluation process that any MLM opportunity, leadership, products, and marketing system and strategy go through before making a decision about joining one. Unfortunately for many new distributors and even experienced MLM distributors, understanding let alone explaining MLM Compensation plans can be challenging to say the least. This poses a problem for new people trying to make a decision about a plan, and for new distributors attempting to explain the plan. Confusion and frustration leading to lost opportunity is often the result. For this reason it is always nice to have a third party review of compensation plans provided in a way that makes them understandable for both the layman and the public.
With that being said, I now offer you a deeper look at Matrix MLM Compensation Plans covering the top questions encountered by layman in the MLM industry.
Are Matrix MLM Compensation Plans proven and sound?
Forced Matrix MLM Compensation Plans have not been around that long nor do they appear to be very popular among companies in the industry. Only about 9% of the thousands of MLM Companies out there employ Matrix plans as their sole means of compensation, and even among the few that do, most have had to modify the Matrix plan in order to survive.
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 up-line producers willing to put real time, effort, and work into their business.
Nevertheless, several major companies operate matrix plans and they have been around for the past 15 years. Successful changes to the plans have insured this longevity. Only time and further data will really determine whether the Matrix is here to stay or not.
Are Matrix MLM Compensation Plans a Pyramid Scheme?
Unfortunately Matrix Compensation Plans have attracted the attention of State Attorney Generals, Postal Regulators and other regulatory agencies because they have appeared to look like Pyramids and even Lotteries. They also have not proven themselves to be that successful over time. This has caused great misunderstandings that have led to a large amount of negative publicity for the Matrix.
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 payout unless you successfully get a specific number of people into the pyramid. You’re paid on enrollees and generally there is no selling or marketing of any products or services necessary.
The Matrix Plan is not a Pyramid Scheme.
The Basics Features of Matrix MLM Compensation Plans Include:
- Limited width.That is to say that the width on the distributors’ first level of distributors is a set number of people. That number usually ranges between two and five people.
- Defined Depth.As more people enroll, they go below the first level distributors and down a set number of levels until the matrix is filled in. If there were 3 first-level people, there could be 9 people on the second level, and 27 people on the third level, etc. etc. The company promoting the products or services will determine how many levels deep they will pay distributor 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 you frontline distributors must by nature be placed underneath others in the Matrix.
- There is greater focus on helping your down-line distributors become successful in retailing, recruiting, and retaining new enrollees.
- “Spillover” The placing of new distributors under others in the matrix happens when an up-line sponsor places new recruits into your business organization.
Advantages of Matrix MLM Compensation Plans:
- 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 a Forced Matrix Businesses. 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 lurefor 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 Matrix MLM Compensation Plans
- Matrix Plans and “spillover” often attract lazy Distributors. You may have a bunch of people joining and looking for the “easy road,” expecting spillover to build their business and incomes for them. This scenario is bad for both up-line distributors really working their business, and for lazy distributors expecting something substantial for nothing.
- 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 most do not realize the 1000’s of people that are required to fill a simple 3×10 matrix.
- The most money to be made in a MLM Matrix compensation pay plan is in the deeper 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 MLM Compensation Plans pay you?
Companies pay distributors a certain percentage of the product sales for each person in their down-line. If your down-line 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 nothing 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 that your filled matrix produces, and then your potential for income stops right there. You don’t get paid on the eighth, ninth, tenth levels, etc.
This may be fine for the novice recruiter but it’s not so great a payoff for the professional marketer who is capable of placing thousands, 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 filled matrix and fill another one all over again. When the new matrix fills you’d do it again, and again, and again, if allowed to by the company.
Smart companies who use Matrix MLM Compensation Plans have added new incentives to help professional MLM marketers earn extra 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 Matrixes 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 MLM pay plans that you may not be aware of:
As mentioned earlier, Matrix MLM Compensation Plans allow for “spillover” to occur. Spillover occurs when someone not personally enrolled by you is placed in your down-line.
In a 3 x 5 matrix, you can only have 3 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 down-line distributors. As more distributors are enrolled by your up-line they naturally will be placed in the down-lines 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 it grow. Though this is definitely an excellent strategy and will assist you in building your organization, it should never be counted on as your primary means for building an organization.
To be a major beneficiary of “spillover” you have to be in the right place under an up-line sponsor who is doing some mega recruiting. The chances for most people to experience this is slim.
Will a Matrix MLM Compensation Plan work for you?
The top tier of network marketers (the 2-5%) in any network marketing opportunity (the ones creating huge down-lines, building stable teams, and creating duplication in those teams) will say network marketing is the greatest thing that ever happened to them.
From the rest of the group mixed reviews abound, excuses ranging from ‘I made a little cash” to claims of outright scams, cults, and a pyramid schemes are common among former distributors. This is representative of Matrix Plans and also the Network Marketing Industry.
The difference between the big winners and the sore losers is in the training and support distributors receive, and in the people they are or are not willing to become to succeed. Are you or are you not willing to become trained and informed to succeed in this industry? Are you ready to apply the knowledge and skills you gain on a daily basis? Are you really ready to follow a simple plan of action to take your life and income to the next level? These are questions you should have answered before joining not after.
I think Matrix plans are great opportunities for the right people. I also understand that most people need a significant amount of marketing training and guidance to become financially free working from home. People need mentorship, systems, leadership, and tools that work to reach the upper levels of this industry.
People need to hear the truth about what it takes to succeed. What they don’t need is another sales presentation filled with more hype designed to get more people into the industry that really don’t belong there in the first place.
So I wanted to reach out to people who are both looking at MLM and to those already involved, to those who are looking to achieve that 5% status. People who want to recruit on autopilot and build sustainable residual business incomes from home using fast track modern day MLM tools and strategies.
So what I’ve done is assemble a resource of cutting edge information, tools, techniques, strategies, and leadership that will bring you staggering results in record time in your business. But you’ve got to take some kind of action today!
