In Compensation plan each plan has its own advantages and disadvantages, but I don’t agreed, one important thing is that how plan is work out. When design a business plan whether unilevel or matrix plan you should have some basic knowledge how plan is working, whether is it attractive or not in the target market etc.
- Comparing Matrix and Unilevel plan
1) In Matrix plan each user can enroll limited number downline (frontline) under his downline.
2) In Unilevel plan each user can enroll unlimited number downline (frontline) under his downline.
Note:-Whether matrix or unilevel user can refer unlimited downline members.
3) The payout distributing matrix and unilevel are same or payout ceiling can limited both of the plans, When you set the payout ceiling 10 (also said as depth ceiling)the payout or commission is distributing up to 10 level
Level 1: 100 USD
Level 2: 75 USD
Level 3: 50 USD
Level 4: 40 USD
Level 5: 25 USD
Level 6: 15 USD
Level 7: 10USD
Level 8: 5 USD
Level 9: 3 USD
Level 10: 2 USD
Total distribution amount is 325 USD,
When you set the payout ceiling it should be attractive or motivate to the users to do more, in the above example the payout ceiling can change 10 to 15, the total distribution amount is not changing 325.
Level 1: 100 USD
Level 2: 80 USD
Level 3: 50 USD
Level 4: 25 USD
Level 5: 20 USD
Level 6: 15 USD
Level 7: 10 USD
Level 8: 5 USD
Level 9: 5 USD
Level 10: 4 USD
Level 11: 3 USD
Level 12: 3 USD
Level 13: 2 USD
Level 14: 2USD
Level 15: 1 USD
Total distribution amount is still remaining same (325 USD),
4) In matrix plan example 2 x 15 more teamwork and support than a 6 x 4 plan
5) Modern network marketing companies are designed various type of plan based on matrix like Autofilling Matrix, Revolving Matrix, Forced Matrix, Matrix Board plan, Stair Step Breakaway Plan etc.
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Infinite Open Source Solutions,
Technology Business Incubator,
National Institute of Technology Calicut,
NIT Campus (P.O.), Calicut – 673601, Kerala
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