A matrix plan is any pay plan that has a fixed width and a fixed depth. If you’re in a matrix plan you are limited by how many frontline distributors you can personally sponsor. While there’s no limit to how deep you can go, you are only paid down to a certain level.
Let’s take a look at a 3 x 5 forced matrix plan, that is a maximum of three frontline distributors, paying down five levels deep. On the zeroth level is you. On your frontline (you first level) you can have up to 3 distributors, the second level can have up to 9 distributors, on the third level 27, on the forth 81, and finally 243 on the fifth level. The end of your payline is level 5.
Hence the total number of distributors you can get paid on is 1+3+9+27+81+243 which equals 364. This is the maximum number of distributors you can EVER get paid on. Can you see what’s wrong here? There’s no limit to how many people you can have in your downline. Yet, you’re being paid on a limited number of distributors.
So if you’re in a matrix, every single one of these positions are golden. You’ve got to have as many superstars in your team as you can in order to maximise this pay plan.
But the irony of the matrix plan is that it does not attract superstars. Quite the opposite, in fact. In a 3 x 5 matrix, you can only sponsor a maximum of three people onto your frontline. If you ever sponsor a fourth distributor, there is no more room on the first level. Therefore, you must place the fourth person on the frontline of one of your frontline distributors, that is, on your second level.
This is called “spillover”. The problem with spillover is that it attracts lazy, welfare minded people, who want a downline to be built for them. And because of this phenomenon of spillover, distributors in matrix plans often put out over hyped advertising campaigns of “do nothing and get rich” to attract lazy opportunists. Companies actually promote this stuff, it’s unbelievable.
Spillover, does not fill the matrix. It just fills down underneath the first lazy welfare minded distributor. If you’re building a downline for a non producer, the positions get harder and harder to fill the deeper you go, because each level has an exponentially increasing number of spots.
The lazy non producer is sitting back, letting you do all the work, filling up all of those spots beneath him. It’s quite unbelievable, but there thousands of people in matrix and binary plans just waiting for spillover to make them rich. But you can only fill up so many spots beneath him, because you can only sponsor so many people.
On the other hand, spillover can encourage good teamwork as sponsors help their downline distributors with recruiting and growing their organisation. This only happens if you sponsor good, hard working people. Remember, in a matrix plan, every frontline position is GOLDEN.
Spillover is nice to have, but if any distributor in your downline is waiting for it to happen and not working with you, then you have a tough job ahead.
Although quite many companies use the matrix plan, they have not had a successful record in the network marketing industry for the reason that they foster nonproducers.
To your MLM success,
Wayne Wu
Founder, The Profitable Networker
P.S. I would love your input! If you have an opinion that would contribute to this discussion, please leave me a comment below.
P.P.S. Share the love. If you enjoyed reading this article and think others will get value from it, please share it on Twitter or Facebook by clicking on the "Tweet" or "Share" buttons at the top of this post. Thank you.
Related posts:
- Which MLM Compensation Plan Is The Right One For You?
- Binary Compensation Plans and Their Complex Balancing Acts
- Which Compensation Plan for Which Colour?
- Understanding the Unilevel Compensation Plan – The Good and The Bad
- How the Stairstep Breakaway MLM Compensation Plan Works
- Does Your MLM Company Have a Fair Compensation Plan?
- iLearningGlobal Terminates Its MLM Compensation Plan!
"I've been in MLM since 1972. I've written and published several MLM books that people have used to build a good income from home. I've read all the great books this industry has produced. And yet, I've never seen a book that has produced as many strong network marketing leaders as fast as 'Success In 10 Steps.' If you're serious about avoiding the pitfalls and creating a successful future in MLM. THIS is the book you need to read!" Tom "Big Al" Schreiter, MLM Trainer & Legend
Jerome Ratliff
Derek Alvarez
Josh Garcia
Charlie Holles
Eric McMillan
Chris Owen
Susanna Hess
Dwayne Huggins
Matthew Pedler
Peter Fuller MBA
{ 6 trackbacks }