Avoid The Matrix Compensation Plan When Choosing Your Network Marketing Company

Avoid The Matrix Compensation Plan When Choosing Your Network Marketing Company

It is important to know the main criteria that make an MLM company successful. When you are choosing your network marketing company, knowing what the compensation plan offers is very important in your future success with that company.

The matrix compensation plans that I have studied fall short when comparing to other types of plans like the binary system. There are some advantages of the matrix, especially when you first begin to build a business, such as the team building aspect that will be discussed below, but the complexity of these plans and the lack of control that some of these plans allow you when you are placing the people you enroll into your downline do not make this plan my favorite.

The matrix plan is another popular compensation plan that limits the number of people who can go into the first level under you in your organization. After that limit is reached, the rest of your personally enrolled people will automatically go into the next level or space available. It is an automatic "filling" of spots that you don't have a lot of control over. Either the company computer or you (depending on the company's rules) are allowed to place this person under someone else in your downline. This is called spillover, which allows people other than you, the sponsor, to earn a bonus from the new enrollee.

If you have a strong upline or sponsor and you are just starting your MLM organization this plan might offer you the advantage of others helping you build your downline quickly. If you don't have a strong upline, on the other hand, you won't have as much help building your team and you won't have that advantage. Also, because of the limited number of people that can go directly into your first level, you may find yourself under someone who didn't recruit you. In other words, if you are joining a company because you trust and respect the work of your sponsor, you don't have control if you will actually be under that person!

Another disadvantage that some people feel very strongly about is the fact that this type of compensation plan can encourage business builders, who don't produce a lot which makes their upline resentful because they aren't helping produce anything for the organization, they are just benefitting because of their position in the matrix design.

Most companies with a matrix design compensation plan have made modifications and added bonus structures to make the plan more attractive to business builders. My advice to you is when you are choosing your network marketing company, you should study each compensation plan in detail. If you have questions about the plan or just don't understand it, call the company to completely make yourself familiar with the way you will earn your income with them!

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