Forced Matrix Mlm Compensation Plan Review
Do yourself a favor; seek out third party information, facts, and resources that deal with exactly what it is going to take to be successful in this industry first, before you make a decision about any company or an investment in any business opportunity or MLM compensation plan including any Forced Matrix plans.
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So… you are going to invest yourself, your time, energy, dreams, and resources into building a business. If as new distributors you better understand the dynamics of the pay plan you will be considering, then you’ll be better able to choose the right opportunity and business to invest your lives in.
It has become increasingly clear to me that Mlm Compensation Plans should be subjected to the same evaluation process that any Mlm opportunity, its leadership, products, and marketing system go through before you make a decision about joining.
While the pay plan is clearly important, it is only one part of any MLM opportunity. It is your duty to look at the whole package, including but not limited to: Pay Plan, Products, Automated Tools, Market Size, Leadership, Start-Up Costs, Mentorship, and your personal level of Skill and Preparedness.
With that being said, let’s now look deeper at MLM Compensation and the Forced Matrix Plans.
Are Forced Matrix Plans proven and sound?
Forced Matrix Mlm Compensation Plans have not been around that long nor do they appear to be very popular among companies in the industry. Only about 9% of the thousands of Mlm Companies out there employ Forced Matrix plans as their sole means of MLM compensation. And even among the few that do, most have had to modify the Matrix plan in order to survive.
One major problem and complaint is that the Forced Matrix type Plan fosters lazy distributors that don’t produce. This is a great source of frustration for upline producers willing to put real time, effort, and work into their business.
Nevertheless, several major companies operate Forced matrix plans and they have been around for 15 or more years proving their Forced Matrix Systems resilient against the test of time in the MLM compensation plan world. Successful changes to their plans have insured their longevity. Only time and further data will really determine whether the Matrix is here to stay or not.
Are Forced Matrix Plans a Pyramid Scheme?
Pyramid Schemes are illegal enterprises. Forced Matrix Mlm Compensation Plans may look like a pyramid when they are filled up, but the similarity ends right there.
Unfortunately MLM Forced Matrix Plans have attracted the attention of State Attorney Generals, Postal Regulators and other regulatory agencies because they have appeared to look like Pyramids and even Lotteries. They also have not proven themselves to be that successful. This has caused great misunderstandings about this type of MLM compensation that have led to a large amount of negative publicity for the Forced Matrix.
An easy way to spot a pyramid scheme is there is rarely a legitimate product or service for sale. It’s more of a recruiting game with a buy-in price to be paid. Another clue is there is no payout unless you successfully recruit a specific number of people into the pyramid. You’re paid on enrolling and generally there is no selling or marketing of any products or services necessary.
The Basics Features of Forced Matrix MLM Compensation Plans Include:
- Limited width. That is to say that the width on the distributors’ first level of distributors is a set number of people that usually ranges from two to five people.
- Defined Depth. As more people enroll, they go under those first level distributors and down a set number of levels until the matrix is filled. If, for example, there were 3 first-level people, there could be 9 people on the second level, and 27 people on the third level, etc. The company promoting the products or services will determine how many levels deep they will pay commissions on in their specific MLM compensation plan.
- There is less emphasis on recruiting a large number of people. Limiting the number of frontline distributors causes some important features. Any distributors that you sponsor beyond your first line distributors must by nature be placed underneath others in the Matrix.
- There is greater focus on helping your downline distributors become successful in retailing, recruiting, and retaining new enrollees.
- “Spillover” The placing of new distributors under others in the matrix when an upline sponsor of your places new recruits into your business organization is an exciting feature of Matrix Mlm Compensation Plans.
Advantages of Forced Matrix Plans
- Matrix Compensation Plans are very attractive to part-timers and novice distributors. The low monthly volume requirements to qualify that often accompany these MLM compensation plans helps it to be a workable plan for both part-timers and the non-sales driven distributor.
- Success is more within the reach of Novice and Part-Time distributors who are willing to do some work to achieve it.
- Many find recruiting is easier with Forced Matrix Businesses. Many good forced matrix systems offer a low investment to start up and remain active. Consequently many more people are apt to sign-up quickly when offered the opportunity.
- “Spillover” a feature of the Forced Matrix Plan, can be an attractive lure for novice distributors and part-timers.
- Forced Matrix MLM Compensation Plans seem to work well in companies where most of the products are used and consumed by the distributors, rather than retailed to outside consumers.
- Forced Matrix Compensation Plans by nature promote greater teamwork within an organization.
Disadvantages of Forced Matrix MLM Compensation Plans
- Forced Matrix Plans and “spillover” often attract lazy MLM Distributors. You may have a bunch of people joining looking for the “easy road” expecting “spillover” to build their business and MLM income for them. This scenario is bad for both upline distributors really working their business, and lazy distributors expecting something substantial for little effort expended. It is a negative feature of this MLM Compensation plan.
- The number of people required to completely fill a Forced Matrix Plan is huge! Many join with excitement realizing the incredible payout one of these matrix’s can provide when filled, but not really realizing the 1000’s of people required to fill even a simple 3×10 matrix.
- The most money to be made in a MLM Forced Matrix compensation pay plan is in the deepest levels where the matrix is widest. Many frustrated distributors will drop out of the business without ever attaining the huge numbers of distributors necessary to reach this income potential.
How do Forced Matrix MLM Compensation Plans pay you?
Companies pay distributors a certain percentage of the product sales for each person in their downline. If your downline has thousands of producing distributors that number can be amazing! However, if your team is only yourself and a handful of new recruits that check may be a very small one. If you’re a “lazy” distributor it can mean none at all.
In a hypothetical 3×7 Matrix, MLM compensation payment on your business organization would pay you to the 7th level and then stop because your matrix would be filled at that point. You get commissions on your seven levels and the sales volume your filled matrix produces and then your potential for income stops there. You don’t get paid on the eighth, ninth, tenth levels, etc.
This may be fine for the novice recruiter but not so great a pay off for the professional marketer capable of placing thousands, even tens of thousands of distributors in an organization.
Because of this many Forced Matrix Plans allow you to rejoin your organization at this point and begin building a new matrix with your new first level line of distributors starting directly underneath your first filled matrix. This is referred to as an Expandable Matrix.
If you’re a real go-getter you could conceivably re-join beneath your first matrix and fill another one all over again. And when that matrix fills you’d do it again, and again, and again, if allowed to by the company.
Smart companies who use Forced Matrix Mlm Compensation Plans have added incentives to help professional Mlm’ers earn income from the lower levels of their Mlm Matrix Plans. Matching bonuses, the addition of a Uni-Level plan after certain levels have been reached, and Expandable Matrix Plans are all examples of ways these companies have sought to compensate and attract the “Heavy Hitters” of the industry. You’ll need to consult your specific company MLM compensation plan for these details.
Aspects of Forced Matrix MLM Compensation plans that you may not be aware of:
As mentioned earlier Forced Matrix Mlm Compensation Plans allow for “spillover” to occur. Spillover occurs when someone not enrolled by you is placed in your downline. In a 3 x 5 forced matrix plan, you can only have 3 distributors on your frontline, and so the next distributors that you sponsor naturally “spill over” into the matrix under one of your frontline or further downline distributors. As more distributors are enrolled by your upline they naturally will be placed in the downlines of your team. This is often a large selling point of Forced Matrix Mlm Compensation Plans.
Your best bet to capture and capitalize on MLM compensation “spillover” is to join under a “heavy hitter.” They often sponsor huge numbers of distributors, which can spill into your organization and help to build it. Though this is definitely an excellent strategy to assist you in building your organization, it should never be counted on as your primary means to build an organization. Everyone frowns upon lazy distributorship.
To be a major beneficiary of “spillover” you have to be in the right place under an upline sponsor who is doing some mega recruiting. The chances for most people to experience this is slim. However, it can be a very helpful aspect for someone who is serious about building a large and successful organization.
Will a Forced Matrix Plan work for you?
2-5% of the distributors in any network marketing opportunity (the ones making the big money, building stable teams, and understanding what it really takes to win with an MLM compensation plan) will say network marketing is the greatest opportunity they were ever introduced to bar none! They are raking in the cash!
Of the 95% of others, reviews will be a mixed bag of excuses ranging from ‘I made a little money,” “it wasn’t for me,” to “it’s an outright scam and a pyramid scheme”. This is true of not only Forced Matrix MLM compensation Plans but also of the Network Marketing Industry as a whole.
The difference between win or lose, is in the training you receive, and in the person you are willing to become to succeed. Are you or are you not willing to become trained and informed to succeed in this industry? Are you ready to apply the knowledge and skills you learn on a daily basis? If you are not MLM is not for you… Are you really ready to take your life and income to the next level? These are questions you should have answers to before joining not after.
That’s actually the reason I put this article together. I think Forced Matrix MLM compensation plans are a great opportunity for the right person. But I also understand that it takes a lot of marketing knowledge, proper training, discipline, and mentorship, for most people to earn a significant income from home. People need to hear the truth; they need answers not hype. They need mentorship and strategies that work. When these are put in place and put to work people get different results.
So I wanted to extend an offer to people who are both looking at Forced Matrix Mlm Compensation Plans and to those already involved with them. To those looking at Mlm and to those already involved ,to help you learn how to recruit people, and build a sustainable residual business income from home the right way using modern day MLM tools, technology, and strategies. The game has changed significantly yet too many old boys are still flogging a dead horse telling you he’ll still plow just fine for you if you’ll just believe and want it bad enough.
So what I’ve done is put together an incredible amount of cutting edge information that will teach you exactly how to succeed in Mlm, and it will work for you whether you’re involved with a Forced Matrix MLM compensation plan or any other reputable Mlm Pay Plan!
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I hope this article about Forced Matrix MLM pay plans was informative and helpful for you and wish you the best in your business ventures and your life.
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If you enjoyed this MLM Compensation Plan Article then check out the other Compensation plans on the “MLM Training” resource page.
You also might want to check out the “MLM Compensation Plan Basics” if this was too advanced
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