This plan looks like a grid in which a distributor is limited to a certain number of recruits at each level. For example, in a 3-by-5 matrix, each level down to five can have only three downline distributors.
This type of plan is sometimes considered to be more gimmicky than others. Why? Because due to the width limitations, new recruits may find themselves placed underneath upline distributors who did not directly recruit them. In a three-wide matrix, for instance, the fourth distributor you personally sponsor would be placed under one of the first three distributors you personally sponsored (your first-level distributors).
This automatic filling of spots in the matrix can be attractive to novice distributors if they sign on with strong leaders who help fill their grids. Also, it works well in companies where most of the products are used by the distributors, rather than sold to outside consumers.
Matrix plans have been subjected to attacks by regulatory agencies because they sometimes look like “a game.” By and large, they have not had a successful record in the industry, and they foster nonproducers, which makes the upline distributors resentful. Nevertheless, several major companies operate matrix plans. Only time will tell whether these plans are here to stay.
Evaluating MLM Compensation Plans: The Matrix
November 10, 2005 by Ty | 5 Comments
In Network Marketing Compensation
Smartguy on March 25th, 2006 at 3:49 pm
Matrix plans reward laziness. They suck the efforts from the workers and place those efforts under the lazy people. The workers do not receive spilloever because they fill up their frontline positions while the lazy receive spillover because they do nothing. Who wants to join on their sponsors 3rd, 4th or 5th level because their sponsor has filled up the rest. A flawed plan that will never create mega incomes.
JoeyDeeeee on May 10th, 2006 at 11:01 am
It worked for Amway!
Ty on May 10th, 2006 at 11:06 am
Amway is not a Matrix plan, it is a Stairstep Breakaway.
Steve Durfee on November 17th, 2006 at 7:37 am
Our 2×12 matrix works exceptionally well primarily because we have 2 requirements designed to benefit the distributor and the company. 1. In order to get paid you must personally sponsor 3 “sharp” people (Guarantees Spillover)and 2. be on our $34.95 Autoship. Our $20 Fast Start Bonus puts most people into profit their very first month.
Steve Durfee aka DoctorCoffey@aol.com
Nathan Rogers on December 21st, 2008 at 9:47 am
Also Ultra International has a 2 x 12 Matrix. Very good company. Been around for 22 years strong.