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Top MLM Matrix Risks When Choosing a Compensation Pay Plan

You might have thousands of ideas pondering in your mind. Making tons of money with the right idea is possible. However, what’s difficult is to determine whether the pay plan you choose is right. So, do you want to know to determine the perfect MLM Matrix Plan for your business success? Read on to learn the tricks.

 

 

Design Pitfalls In various Matrix Types

No matter which matrix type you choose, there can be several design flaws associated with each of them. When reviewing a pay strategy, look for the potential faults that may exist. Have a look at the three most common models and the potential flaws that may occur while designing them.

• Binary Matrix
• Uni-level or Standard Matrix
• Coded Bonus or Multiple Matrix

 

Binary Matrix

The working of binary goes this way – A plan is divided into two down-line groups – left leg and the right leg. While some business models allow you to sponsor only one person per leg, in some others you can sponsor 3 or more. However, in either case, your business is divided into two down-line groups.

A common risk in binary models referred to as a “Weak Leg” Pay Plan. Often in most weak leg scheme, you get paid for less than 50% of all products sold by your team.

Take an example: Say your left leg team has earned $18,000 in product revenue, while the right leg has produced $20,000. In “Weak Leg” plan, you don’t get paid for the leg that is generating the most sales volume. Hence, you won’t get paid on the $20,000 in sales, no matter how hard your sales team worked for it.

Think it this way -Would you choose a job where you are required to work 40 hours a week, but paid for only 20 hours? Obviously not! Hence, make sure to look for such risk when reviewing your binary pay program. Getting paid for just half of your down-line's efforts is a huge loss.

 

Standard Matrix

This plan type has a very complicated structure and the risks associated with this can happen in all matrices.

Let’s say you’re implementing two plans concurrently. On the first one, you have consistent percentages at 5% across the entire 8 level plan. In the second one, there is a constant rise and fall in the percentages. Such inconsistency in the percentages at various levels causes confusion in the person or the team that owns it. 

Keep in mind that a confused person will always say NO or quit. Therefore, avoid a MLM Matrix plan that is confusing to explain.

 

Multiple Matrix

As the name implies, the structure uses more than one standard structure we’ve just finished learning about. Or, it is simply a combination of one or more standard matrices.

The structure is built using one standard matrix at first. With the addition of each new team, a new matrix is added one after the other.

There are two major pitfalls associated with this structure. Firstly, the people are left behind. Let’s say, a person gets enrolled at the initial matrix of the sponsorship program. Now, with the advancement of this sponsorship, the person is required to start a second matrix for achieving bigger bonuses. This makes it difficult for the person to determine which matrix he/she should focus on more. This is how people get left behind in this structure.  

Secondly, each person will have to hire more team members as compared to a single matrix model. It takes a lot of their valuable time and efforts to build an initial structure. It is even more challenging to look for additional members as sponsors for building a new matrix to earn higher commissions and bonuses.

 

The Bottom Story

Make sure to look for the potential pitfalls associated with each plan design. Ensure you get paid for all the sales in your down-line. In addition, be sure that the commission you choose are easier to explain and that you don’t have to sponsor more people to begin an entirely new matrix. For this, you can find a MLM plan provider who can help you make good choices.

 

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