Categorized | Evaluating MLM

Matrix Compensation Plans

The Matrix plan is perhaps the plan that is most closely related to a pyramid scheme in the industry and my least favorite among the 4 main plans.

Some times called Forced Matrix (which AGs love to take a look at - the word forced is the key) or Fixed Matrix, this type of plan usually provides quick growth and some quick depth for Company and Distributor. The Matrix plan is relatively new compared with Stair Step and Uni-Level first hitting popularity around 1984/85. Companies' not understanding this type of program and it's true potential have failed miserably and missed tremendous potential for both themselves and their Distributors. See those factors that apply to all types of plans.

The Matrix incorporates many of the characteristics of Uni-Level except that it always has a fixed number of people on the 1st level and pays bonus for a fixed number of levels in multiples of that fixed lst level number. For instance, in a 3x3 Matrix, each Distributor would have 3 people on the lst level, 9 on the 2nd level and 27 on the 3rd. Like Uni-Level, the Matrix can go down as many levels as there is money to pay out. Again, for those who like the Matrix there are lots of possibilities for variation.

http://www.mlmia.com/blibraryarchiveJune03.aspx#stair


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