All You Need To Know About Matrix MLM Plans

Supriya Saxena

Supriya Saxena

Senior editor

Parul Saxena

Chief editor

Last updated: December 2, 2020

Organizations have observed a 23x increase in customer satisfaction after adopting an omnichannel marketing strategy. Interestingly, 50% of marketers using a multi-level marketing strategy were able to achieve their financial targets.

To keep up with the changing trends, companies are looking forward to implementing matrix MLM plans, to increase their footfall and make profits. Let us try and understand the different aspects of matrix MLM plans. 

What Matrix MLM Plan?

Matrix MLM plan or forced matrix MLM plan is a pyramid where employees/team members are arranged into a fixed number of rows and columns. Since the width is limited, organizations can hire more members in the downline and keep the fixed set of primary members. 

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For example, there can be three, four, or even five main members, and these members can hire members in their downline or teams. Each member of the matrix plan gets a commission when he/she adds a new member to the downline.

Also, Read: Network Marketing Guide: The Myths & Truths, The Past & The Future  

Matrix MLM Structure 

The matrix MLM plan adds default members to the first level, and the new members are added to the next groups as the plan permits. The most common matrix MLM plans are 3X9, 2X12, 4X7, and 5X7. 

Matrix MLM Structure

For example, if you choose a 2X12 plan, you can recruit two members at the first level, and the rest members will spill over to later levels with a depth of twelve levels. 

The matrix MLM plan is advantageous for part-time distributors and helps businesses manage parameters of a matrix compensation. 

Also, Read: How Single Leg MLM Plan Works and Its Features
 

Features of Matrix MLM Plan

Here are some of the features offered by a matrix MLM plan. 

1. Customized Matrix MLM Plans 

With customized matrix MLM plans, companies can pick up a plan of their choice and even build an altogether new one with the matrix MLM software

2. Fix Width and Depth Structure 

The fixed width and depth structure allow companies to easily add and keep track of new members and also locate the default members. 

3. Easy To Follow and Understand

The matrix MLM plan has a user-friendly interface that makes it easy to understand for teams in an organization. 

Types of Matrix MLM Compensations 

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

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. Matching Bonus

A matching bonus is compensation earned by sponsors based on the downline distributors’ earnings they have sponsored. For example, there is a 20% bonus, and distributor X has sponsored distributor Y. So, when the distributor Y earns any commission or rewards, the sponsoring distributor X would get 20% the commission earned by the distributor Y. 

4. Position Bonus

A position bonus is earned when the downline team members recruit new members and join their matrix. 

For example, in a 3X3 matrix, a member will receive a position bonus when a new member joins in the 3rd last level. The percentage of position bonus can be increased and decreased in lines with company policies and regulations. 

5. Forced 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. 

For example, in a 3X3 matrix plan, members will need to recruit three members on the first downline, nine members in the second downline, and twenty- seven members in the third. 

Top 3 Multi-Level Marketing Plans 

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

1. MLM Board Plan 

MLM Board plan or the revolving matrix plan is suitable for a limited number of people. 

MLM Board Plan

The most common adopted board plan is a 2X2 board plan where each member needs to recruit two other people. The process continues until all the positions on the board are filled. 

If the members exceed the board’s limit, the leading members divide it into two-sub boards and promote the top member to the higher level. The process continues and repeats every time a board reaches the maximum allowed members. 

In the MLM board plan, a default member can sponsor two members on the first level and up to four on the second level. 

2. Unilevel MLM Plan 

Unilevel MLM plan allows members to sponsor only one line of distributors. Thus, everyone they sponsor is on their frontline.

Unilevel MLM Plan

Moreover, there is no width- restriction, and members can build a strong network down the line. It is ideal for all kinds of MLM organizations. 

The structure of the Unilevel MLM plan provides the first person a portion of revenue from the profit generated by every member in his/her downline. 

3. Generation MLM Plan

A Generation MLM plan takes into account the whole volume from upline to downline (people with the same and different ranks). 

Generation MLM Software

For example, if a plan has 16 levels and consists of 4 generations. The first generation will get more dividends as compared to the fourth generation.

If you pay 10% on your first generation, you will pay 6% on the second. Whereas, for the third and fourth generation, you will pay 4% and 2% respectively. 

Top 4 Popular Matrix MLM Software

A matrix MLM software allows you to set up your matrix compensation plans. Moreover, the admin control panel makes it easy to monitor the network using a simple user interface.  Here are some of the popular matrix MLM software. 

1. Prime MLM 

Prime MLM is a matrix MLM software ideal for small and large scale companies. The software provides endless customization abilities and boasts of a user-friendly interface. Prime MLM helps save manual efforts and offers all the downlines and activities (income and expenditure) with a single click. 

Features 

  • E-Commerce Integration
  • E-Wallet.
  • MLM Activity Tracker
  • MLM Payment Gateway
  • Employee Management
  • Genealogy Tree

2. Cloud MLM Software 

Built With Modern Open Source Technologies, Cloud MLM software offers a full-featured dashboard to easily register members, keep track of payments earned, and get information about them. The software also provides different MLM compensation plans like matrix, binary, unilevel, and board. 

Features

  • E-Wallet
  • Multi-Currency Support 
  • Website Replication
  • Dynamic Tax Calculations 
  • Member Management

3. Epixel Matrix MLM Software 

Engineered using Python, Node.js, and Google’s Golang, Epixel matrix MLM software offers fast and real-time commission processing. Moreover, the software has an advanced back-office and intelligent commission processing engine, making it suitable for all organizations involved in multi-level marketing. 

Features 

  • Fully Responsive
  • E-Wallet and E-Wallet Transfer
  • Multiple Wallets
  • Integrated Rest API

4. Infinite MLM Software 

Crafted with modern techniques including  PHP, CMS, and Apache, Infinite MLM software offers faster online-payment processing and sales reports and inventory management. Infinite MLM software also provides different compensation plans like matrix plan, binary plan, unilevel plan, and the party plan. 

Features 

  • Easy Customization 
  • Automatic Payment
  • E-Wallet
  • Website Replication
  • E-Commerce
  • Multi-Currency Support
  • Multi-lingual Support

Matrix MLM plans have the potential to offer unprecedented growth to organizations. It is being used by individuals and companies to make more profits and generate revenue. 

Did we miss out on any aspect? Let us know in the comments section below!

Supriya Saxena
A logophile by heart, Supriya loves to research and write about the latest technology and trends. She believes that writing is the best medium to influence people in a positive way and has 3+ years of writing experience.

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