MLM Matrix Compensation Plans --Words of Caution
First off, I assume you understand what a mlm matrix
compensation plan is.
My purpose of this article is to give you first hand knowledge
and experiences using matrix plans. Although this might sound
like I am hammering mlm matrix's to death and also that I don't
like mlm matrix's, that is not the case. I use matrix's as a
backdoor method to my mlm marketing efforts.
However, mlm matrix's are NOT my primary business.
MLM Matrix Compensation Plans
Words of Caution: #1
Matrix
compensation plans have not been around that long and they do
not really have that good of track record. Very few companies
have made it with a pure mlm matrix plan. Many of them have had
to modify their matrix compensation plans in order to
survive.
I read somewhere that only 9% of all mlm companies (and believe
me there are thousands of companies out there) are using a mlm
matrix compensation plan.
On the flip side (to be fair) a couple of mlm companies use a
matrix plan and they have been around for 15 years. YES, they
have made some major modifications to their compensation plans
and that is the major reason they are still around. You simply
cannot live on a matrix plan for long term success. Adding a
uni-level plan or some other type of compensation on the backend
of a matrix greatly increases survival rates.
Words of Caution: #2
Smaller matrix's especially those that have a 2 x or 3x first
level will attract lazy mlm distributors.
More In Depth Coverage: if you can earn income from all
levels in your matrix without having to sponsor anyone--will
attract lazy mlm distributors.
A MLM Matrix compensation plan will attract State Attorney
Generals, postal regulators and other regulatory agencies
because it will appear to look like a pyramid or even a lottery.
To top that off a MLM matrix compensation plan that requires
recruiting will create misunderstandings between all parties
hence, negative publicity.
Negative publicity will kill a MLM faster than anything.
Words of Caution: #3
Matrix's usually limit the levels you can earn income from. "Hey
Bob, all compensation plans limit the levels you can earn income
from, so what's new"? Well, many things are different including
how many mlm distributors can be on any of your levels.
Uni-level plans have unlimited width.
More in Depth Coverage: Talk to successful mlm'ers and
ask them were the majority of their income comes from. Levels
1-4 or anything below their 4th level.
MLM matrix compensation plans limit the levels you can earn
income from and usually are structured like this 2x3 or 3x4.
Smart companies who use a matrix plan have added incentives to
help the professional mlm'ers earn income from the lower levels.
Some add a 100% matching bonus (more discussion on this later),
others add a uni-level plan after certain levels have been
reached, while other companies will allow for an expandable
matrix. This simply means once you fill your matrix you are then
allowed to start another matrix.
By starting another matrix you can then capture at least SOME of
the downline income LOST IN A MATRIX that would have been paid
in a uni-level plan.
100% Matching bonus | 50% matching bonus
You will see this a lot in a matrix plan. That is the companies
simple solution to helping professional mlm'ers capture income
below their advertised pay lines. ie: 2x3 or 5x5
However, if you take a 3x3 matrix and fill it up you will have 3
on your first level, 9 on your second level and 27 on your third
level. By offering you a match on anyone you personally sponsor,
you can receive income from levels 4, 5 and 6 if that person you
sponsor falls on your third level. Sounds good doesn't it?
Remember, there are another 26 members on your 3rd level and you
will never receive any type of compensation if you train these
people to fill their personal 3x3 matrix. Why?
Because their new members fall outside your matrix and you
didn't sponsor them. This is the major drawback of matrix plans.
Yes, even uni-level plans limit your income potential below
certain levels, but they include options that allow you to earn
income from levels deeper than their normal bottom payline.
Oftentimes, they will block you after someone in that particular
leg reaches a certain level. Some even break off.
One positive to this spin is the fact that someone has to
sponsor the new mlm distributor. Because you will receive a
matching bonus, you do have a vested interest in their success.
Basically, you will take a greater degree of interest in helping
this person succeed. Without a matching bonus, this person would
more than likely fall through the cracks.
Word of Caution: # 4
Let's get away from negative thinking and look at a positive way
to build a matrix.
More In Depth Coverage:
What we teach our matrix members who join our group is this:
1. join only if you can afford the price of the product +
monthly marketing costs.
2. join only if you are willing to learn our system within 2
weeks and begin to teach it the minute you sponsor your first
new member.
3. join only if you are committed to sponsoring (4 new members
if it is a 2x matrix or 6 new members if it is a 3x matrix)
4. join only if you are committed to sponsoring your new members
within the next 4 months if it is a 2x matrix and the next 6
months if it is a 3x matrix.
5. don't worry about marketing we provide coops
6. don't worry about what to say, we have trained leaders who
will help
7. don't worry about money, we are committed to helping you
break even quickly and into profit soon.
8. Be ready to study this industry so you can become a leader
ASAP.
Now, that is a long laundry list. And yes, we still have people
that beat the system, however what we do have are new mlm
distributors who join our team, knowing what is expected of them
and what is expected of us.
Normally, our groups grow slow to begin with, once momentum
kicks in we grow fast, we grow profitable and we grow stable
income checks that keep growing month after month.
Normal compensation checks in matrix's grow the first 4-6 months
and then they plateau for another 2 months before they begin to
crash in less than 3 months. This is very typical of matrix's
unless you have some filters set in place, up front.
MLM Distributors are always happy to join a matrix, however they
are not happy to do all the work. With the proper expectations
of your group laid out you will build a happy, productive and
duplicating downline.
Right?
If you are currently in a mlm company that uses a matrix, please
feel free to contact us and tell us your success/failure with
matrix plans. There are always exceptions to the rule and we
want to hear your voice.
God Bless and have a fabulous week.
Bob
Your Source for MLM
Leads Reviews
MLM Consultant, Bob has coached thousands of networkers
since the early 1980's along with 16 Years of Coaching High
School Baseball & Football. Bob has reached the top level in 3
different companies and served as a member of the board for 2
years with a large nutritional company. Today Bob continues to
coach network marketers/mlm'ers and he lives on the Yakima River
in Prosser, Wa. With his wife Sue, two kids, Robbie & Kirsten,
and their dogs named Cougs, Champ, Cammie and CJ.