What Are Matrix Compensation Plans

Matrix compensation plans tend to be very limited in their structure. Most MLM / Network Marketing companies allow the front line of sponsored distributors to only reach two.

It also usually has a predefined depth of maybe 5 to 12 levels as well.

The main problem with these types of pay plans is that your front line may not even be performing with regards to product distribution or sponsoring further people onto your team.

From my perspective this limits your business growth which at the end of the day restricts the size of the rebate cheques that you may receive.

In some companies, once you reach your maximum depth of say seven levels for example, you are allowed to sponsor yourself in at that level and start building another down line.

That can be quite complicated and you may only be allowed to do this a few times depending on what company you are with.

The popularity of this compensation plan has been on the decline where Unilevel and Binary compensation plans are becoming more and more favored by both companies and prospects.

One last thing with the Matrix compensation plan is that the companies who use them usually require you to spend a certain amount of money on products just so you are entitled to the maximum rebate level.

Say you decided to rejoin your organization at deeper levels because you have maxed out you first ‘matrix’, which in this case the maximum matrix size might be two wide and is six levels deep, giving you a total of 64 people in your team / matrix.

Then you would create another ‘matrix’ below you first 64 people if you wanted to continue expanding your organization.

An MLM company may require you to spend $250-$500 a month on products for each matrix you have, so you can be eligible for the highest compensation level.

To me that doesn’t make you a very independent business owner at all. It gives the impression of being forced into buying product just because you want to build your business.

To sum things up here, I recommend avoiding this type of compensation plan and go for something that won’t restrict the way you want to build your Network Marketing business.

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