Matrix Plan MLM software

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Matrix Plan MLM software

Overview:

The Matrix MLM Plan (also known as the “Forced Matrix Plan”) is a structured compensation plan where distributors can recruit a limited number of downlines per level. This plan is known for its fixed-width and fixed-depth format, meaning that each member can have a set number of direct recruits (width), and the commissions are typically paid down a set number of levels (depth).

Key Features:

  • Fixed Width: Limits the number of downlines each distributor can have on their first level (e.g., 3×3 Matrix Plan means 3 recruits per level).
  • Fixed Depth: Commission earnings are restricted to a specific number of levels deep (e.g., 3 levels).
  • Spillover Mechanism: When a member’s frontline is full, additional recruits spill over to the next available position in their downline.
  • Encourages Team Building: Ensures that leaders help their downlines grow since spillover benefits all members.

 

How the Matrix MLM Plan Works

Let’s take an example to illustrate how a 3×3 Matrix Plan functions:

  1. Alice joins the program and can only recruit 3 members on her Level 1:
    • Bob
    • Carol
    • David
  2. Once Alice’s frontline (Level 1) is full, any additional recruits (e.g., Eve) will be placed under her existing downline members (Bob, Carol, or David). This creates a spillover effect.
  3. As Bob, Carol, and David recruit their own members, Alice’s Level 2 is filled, and then Level 3 as they continue recruiting.

 

Matrix Tree Diagram Example

 
                    Alice
                 /    |    \
               Bob   Carol  David
             /   \     /    \    /
          Eve  Frank  Grace Henry Ivy
         /  \   /  \   / 
     Jack   Jill Mike Sara

 

Explanation:

  • Level 1: Alice’s direct recruits (Bob, Carol, David).
  • Level 2: Members placed under Alice’s direct recruits due to spillover (Eve, Frank, Grace, etc.).
  • Level 3: Further recruits placed under Level 2 members, filling up the matrix.

 

Step-by-Step Breakdown of the Matrix Plan

  1. Recruiting and Spillover:
    • Alice can recruit only 3 members on her Level 1.
    • If she recruits more than 3 members, the 4th recruit (Eve) spills over to Bob’s downline, filling the next available position.
    • This process continues as new members join, filling positions from left to right.
  2. Commission Structure:
    • Commissions are usually earned on each level up to the specified depth.
    • For a 3×3 Matrix Plan:
      • Level 1: 10% commission on sales from direct recruits (Bob, Carol, David).
      • Level 2: 5% commission on sales generated by spillover recruits (Eve, Frank, Grace, etc.).
      • Level 3: 3% commission on sales from the third-level members (Jack, Jill, Mike, Sara).
  3. Spillover Benefit:
    • The spillover effect encourages teamwork, as upline members continue to add recruits that benefit their downlines.
    • If Bob’s Level 1 is filled, Alice’s new recruits will spill over to Carol or David’s teams, helping them grow.

 

Key Advantages of the Matrix Plan

  • Encourages Teamwork: Spillover benefits members in the upline and downline, creating incentives to help each other.
  • Predictable Structure: The fixed width and depth make it easy to understand and plan for commission earnings.
  • Balanced Growth: Helps prevent members from becoming overwhelmed by managing too many recruits.
  • Ideal for Newcomers: Easy for beginners to get started since they only need to focus on recruiting a few people.

 

Example Calculation of Earnings

Let’s say Alice is part of a 3×3 Matrix Plan:

  1. Alice recruits 3 members (Bob, Carol, David) who generate $1,000 in sales each.
    • Level 1: Alice earns 10% on each member’s sales.
    • 10% of $1,000 (Bob) + $1,000 (Carol) + $1,000 (David) = $300.
  2. Bob, Carol, and David recruit their own members, forming Alice’s Level 2:
    • Each member generates $500 in sales, and Alice earns 5%.
    • Total Level 2 sales: 9 members × $500 = $4,500.
    • 5% of $4,500 = $225.
  3. Level 3 members generate $300 each, with a 3% commission:
    • Total Level 3 sales: 27 members × $300 = $8,100.
    • 3% of $8,100 = $243.
  • Thus, Alice’s total earnings are:
    • $300 (Level 1) + $225 (Level 2) + $243 (Level 3) = $768.

 

Matrix MLM Plan Recap

  • Fixed Width and Depth: Ensures members don’t get overwhelmed with too many recruits to manage.
  • Spillover Effect: Provides incentives for uplines to keep recruiting, benefiting their downlines.
  • Best for structured growth: Ensures a balanced and steady growth model, preventing unlimited horizontal expansion.