MLM Matrix Plan: Need for the Networking Businesses

Author: Mlm Yug

MLM (Multi-Level Marketing) Matrix Plan is a Plan in which there is a schematic arrangement of the members of the MLM company in the form of pyramidal shape. The sponsors being the upline members and the recruiters being the downline members complete the hierarchy of the organization and the formation thus takes the shape of a pyramid. The downline members sell the products and services to the next in line downline members and a certain percentage of their compensation is transferred into the account of their upline members. Hence, a unique feature of this matrix plan is that the more the downline members earn, the more profitable it is for the upline members.

MLM Matrix plan is considered different due to its restricted width. While using this MLM plan, the distributors who are supposed to be sponsored within the initial level are strictly restricted to be less than 5.

Salient Features of an MLM Matrix Plan

1. Advantageous for both Sponsors and Recruits

According to Matrix Plan, the width in the schematic arrangement is limited but the depth can be much. Hence, the sponsor can motivate his recruits to earn more profit, and further recruits under the downline can bring a total of more lucrative bonuses to the upline. It moves on in a chain process. Hence MLM Matrix Plan is advantageous in terms of earning capacity for both the sponsors, as well as. the recruits.

2. The best opportunity for rapid earning

It functions on the compensation structure of width, as well as, depth. The compensation of this matrix plan is based on the dimensions of the matrix and hence the width, and depth determine the earning capacities of the members. Thus, it is responsible for the growth of the organization. The MLM Matrix Plan has its popularity due to its simple approach and also due to its tremendous capability to make money at a rapid pace.

3. Matrix dimensions provide multiplication of incomes

The MLM Matrix Plan has one of its major characteristics in which basically the downline members earn for their upline. Suppose we consider a 2X5 matrix plan. Hence, the first level will have 2 members in the plan. The fifth level, in turn, will have 32 members. Thus, total members in the structure of the organization for a 2X5 Matrix Plan comes to 2+4+8+16+32 which equals 62 members. As the network builds on, the earning starts increasing for the members.

Matrix MLM Software

Matrix MLM Software is a web-based application and it keeps records of the recruits and their downline’s expenses and earnings. This software is advantageous for both large and small Multi-Level Marketing organizations.

Compensations in MLM Matrix Plan

MLM Matrix Plan provides various types of compensations as discussed below:

  • Sponsor Bonus : It is the earned amount added up from the downline members.
  • Level Commissions : Level Commission is the earned bonus received by the sponsors by recruiting new distributors. On recruiting the new members, the upline gets a commission for their new downline recruitments.
  • Matching Bonus : It is the bonus received by the upline members on the earnings of the downline distributors’ sales. For example: - Suppose A is the sponsor and B is the distributor. B makes a specific sale, and then A gets 25% commission. Here, 25% matching bonus was fixed.
  • Position Bonus : The sponsors recruit the new members. When these new downline members further recruit new members, the upline members enjoy a certain percentage of bonus known as the position bonus.

Advantages of MLM (Multi-Level Marketing) Matrix Plan Compensation

Following are the benefits of MLM Matrix Plan Compensation:

  1. Limited width in this plan brings an urgency among a sponsor to motivate their downline members for earning more profit and also helps the downline to sponsor more distributors under them.
  2. MLM Matrix Plan helps in amplifying the growth of a business for the smooth functioning of the management of the organization without restricting the earning in a controlled structure. It helps the top and middle-level management to take proper decisions.

These are the prominent reasons why MLM Matrix Plan is considered to be the most eminent plan in the world of fast-growing networking business nowadays.