Matrix MLM Plan

What is Matrix MLM plan?

Matrix MLM Plan

Multi Level Marketing (MLM) or Network Marketing is going through an upswing across the world as more and more people are joining in fulfilling their financial goals. Different companies in different countries choose the business/marketing plans that serve their purpose effectively. Some of the popular plans that the companies deploy include binary, matrix, board, generation, hybrid and differential plan, among others.

Matrix MLM Plan

The Matrix Plan is a popular MLM plan, mostly prevalent in the World markets. There are two types of matrix plans – Forced Matrix & Auto-Matrix. In the auto matrix plan, the newly recruited member gets placed automatically in the available space under the sponsor.

The searching method used in the matrix plan: top-to-bottom and left-to-right formula. Whereas, in a Forced Matrix plan, the member can be placed by his/her choice.

The most significant benefit of this plan is its limited width and a limited number of users.


How Does a Matrix MLM Plan Work?

Matrix MLM Plan is one of the best mlm compensation plans that balance self-growth as well as support team growth. By fixing a suitable width versus depth relative, payout achieves this balance easily. Network marketing companies with matrix mlm compensation plan use a Matrix MLM software to effectively manage and automate marketing, prospecting, recruiting, training, and payout processes successfully.

There are two types of matrix multi level marketing structures which are commonly used, and they are either – 1-2-4-8 (2×2) or 1-3-9-27 (3×3) or 1-4-16-24 (4×4), however, there are exceptions like 2×3, 3×7. A binary plan is nothing but a 2×2 matrix plan. Some companies also apply a 4×4 matrix structure or even a 5×5 matrix structure depending on their requirement. 

Types of Matrix MLM Compensations Plan 

Let us have a look at the different types of MLM compensations. 

When a complete matrix is achieved by a member then he will be eligible for matrix commission. It’s like add-on bonus to the members. We can consider 4×4 matrix, for example

  • First Level – 4 Members
  • Second Level – 16 Members
  • Third Level – 64 Members
  • Fourth Level - 256 Members

Once a member achieves this, he will be eligible for Matrix commission.

The Forced Matrix plan is an exceptional plan with specific features that will create maximum members to join in the network. To build your Forced Matrix MLM software with compensation plans check.

1. Sponsor Bonus

MLM companies offer sponsor bonuses or referral bonuses as an incentive to recruit new members. Team members can earn sponsor bonuses after filling the first level of the matrix MLM plan. 

Some online MLM software also offers options to change the percentage bonus as per the company rules and policies. The commonly used Matrix MLM plans include 2×2, 4 x 7, 5×7, 3×9, 2×12 of width, and depth.

2. Level Commissions

The level commission is the compensation earned by recruiting new distributors. The commission can be received when the members recruited by front line members make sales. This level can be extended up to the nth level. 

For example, in a 3X3 matrix, a level commission is earned when the first 3 members recruit new members and gain a sponsor bonus. Subsequently, the next level members can recruit three new users to earn more bonuses

3. Force Matrix Bonus

Matrix bonus is an additional reward for the distributors. The members are eligible for this bonus when they fill their matrix with downline members.