Matrix MLM Plan – Brief Explanation


The matrix MLM plan essentially consists of a pyramid structure, i.e. ordered according to a certain number of columns & rows, where columns are generally refers as depth and rows refers as width. These horizontal lines & vertical columns, limits the total number of distributors you can sponsor during the first phase of operations.

It can be calculated with simple multiplication of width & depth, e.g. there is 3 Columns (width) and 5 Rows (depth) the matrix can be calculated as 3 x 5 (width X depth). A matrix plan is even referred to as a circuit diagram and forced MLM matrix plan. The members, get commission or rewards as and when they rich or complete the specific level, as per the plan. The matrix plan can be restricted by columns or width and a company wants to gain more and more members in the downline.

MLM Software Company or organizations can create a more interesting ladder plan by increasing the depth (row) of rewards and bonuses. Some MLM organizations reduce the width (line). For this reason, it can be said that the matrix plan is suitable for old and new members.

How does MLM Matrix Plan function?

The most popular Matrix MLM plans are 3 by 9 (3×9), 5 by 7 (5×7), 2 by 12 (2×12), 4 by 7 (4×7). The matrix plan works by adding the standard elements to the first level. And all members who register after the 1st level will move to the 2nd level, and on completion of 2nd level to 3rd level and so on.

The characteristic that distinguishes the matrix plan from other plans is that its width is limited. For example, if you opt for the 3×3 Matrix MLM plan, you can hire three members for the first level and transfer the remaining members to the next level with exactly three levels of depth. It is a 3×3 matrix, so it has three numbers in both depth and width.

You can also use this ladder calculator to calculate the specific commission amounts used by the MLM companies. This calculator also helps calculate the monthly income of MLM companies, based on density, configuration and much more.

Various Compensation Plans

Compensations can also be called a bonus. These are additional additions that customers receive to achieve the stated goal. The MLM matrix plan uses different types of compensation plans to activate and stabilize the matrix structure.

The Compensation Plans are:

Sponsor Bonus
The sponsorship bonus can be obtained by hiring or selecting new members for the existing network. It simply means that a donor bonus will be awarded to induce existing members to continue adding new members to the system. Sponsorship bonuses are earned after the first level. This bonus is obtained when members associated with the downline are added to the first line.

Position Bonus
The location bonus is an alternative to taking advantage of some additional income. Downline members can choose the placement bonus when recruiting new members and adding them to their parent. The position bonus rate can be reduced or increased as necessary.

For example, let’s look at a 3×3 table. in this case, a member will only receive the position allowance when any new member is added to its three levels.

Level Bonus
The bonus level is earned when new distributors are hired. This type of bonus is obtained when members associated with the 1st line, hire new members and then receive a bonus through their sales. Then, recruited members can also hire new people so that they can benefit from their sales. So it’s called level bonus, and it’s allowed to expand to level to level

Matching Bonus
The criteria for accepting the bonus match change company by company, because the policies determined by the companies decide it. The Match Bonus is the compensation. That is, it was given to the sponsors. If a new member receives any of the rewards like the matrix or the level, then his or her sponsor also receives a certain percentage of that specific amount.

Matrix Bonus
The Matrix Compensation is a bonus amount granted to distributors. This bonus is given to those members who complete their tables with members added to the downline.

For example, if the MLM Company follows the 3×3 matrix plan, members can add three members to their first level downline, nine members to their second level downline, 27 members to their third level downline, and 81 members to their third level downline. Members to your fourth level downline.