MLM Comp Plan Ups And Downs - The Matrix

In my previous post "MLM Comp Plan Ups And Downs - The Stair-Step Break-Away" we examined the advantages and disadvantages of that type of network marketing compensation plan. Now let's see what we can learn about the Matrix.

WARNING: Neglect to ask these three critical questions at your own peril.

1. "How many people do I need to make a given income goal?"
2. "How much volume do I need to make a given income goal?"
3. "What do I need to do to make a given income goal?"

What makes the matrix compensation plan so popular among network marketers?

The fixed width and depth: make a matrix easy to understand.
Spill over: a typical feature of matrices wherein a new recruit is placed below an existing member of the recruiter's downline, can help build your team's downline.

The up side of the matrix.

1. Spill Over - it's a great team builder.
2. Sponsor-Placed Spill - if you're placed under one of your sponsor’s front line reps, then you could benefit from the spill over that front line rep may create in the future.

The down side of the matrix.

1. Spill Over - this will choke your long-term income potential if it happens in your front line. These are lieutenant positions that must be occupied by strong builders. A dead-beat in one or more of these upper-echelon positions minimizes your comp plan potential. Your only hope at this point is for the dead beat to drop out and leave that position open.
2. Unwanted Spill - moving a spilled member out of your front line is difficult, if not impossible.
3. Fixed Depth - since there can only be "X" people placed in any matrix this also means this comp plan has a maximum earning potential of "X" number of reps. (a full 3 x 5 matrix pays on 363 recruits, you do not get paid on recruit #364 and above.)

There are two types of networkers that do well with the matrix comp plan.

The Robo-Recruiter: he can manipulate the plan for maximum pay-out
The Educated Team Builder: she guards those front-line positions like a general.

Always remember the 3 critical questions before joining a company. What do I have to do, how much volume, and how many team members do I need to make my income goal?

If you join a company with a matrix comp plan, then shut-up about spill over. This feature leads to a Welfare mentality that swallows up front-line positions and reduces pay-outs for you and your team. There are dead beats out there looking for just such a "free ride". Oh, and don't forget your sponsor's incentive to fill those top positions for you.

Do you believe the advantages out-weigh the disadvantages? Great! Then go for it.

If you prefer a comp plan that pays you true unlimited residual income for all your hard work with no surprises, then keep looking.

I appreciate you,

Bill Tessore