Compensation plans are the backbone of any network marketing business. According to internet analytics, 2×2 forced matrix software is the crowd favorite. Forced matrix plan is also called a pyramid scheme or simply matrix plan. It is usually of the forms 2×2, 3×5 etc where the first digit indicates the number of distributors in a level and the second digit indicates the number of levels up to which an affiliate will get compensated.
Forced matrix plan doesn’t have a leg system nor breakaways. Hence they are easy to manage. As described earlier, 2×2 forced matrix means there are two distributors in a level and each affiliate will get earn benefits and gets compensated up to two levels.
As in the case of forced matrix plan of all dimensions, the width and height of 2×2 forced matrix are predefined.Each distributor can sponsor only a limited front line. Hence, if one active user already filled his preset width, then he will have to admit the new recruit to his downline user.
In 2×2 forced matrix plan, affiliates are positioned in a sequential left to right and top to bottom pattern. In this plan, the member is not allowed to select the sponsor. He may even have more than one sponsor.
What are the benefits of 2×2 forced matrix plan?
- This plan simplifies the teamwork required in network marketing.
- Each level has a predefined level commission.
- Since 2×2 forced matrix has limited frontline distributors, there is a very little emphasis on the recruitment of a large number of people.
- Since an affiliate need not recruit a large number of people, an affiliate can recruit a certain number of people and focus his/her efforts in helping their downline sponsor more distributors.
- Since the 2×2 forced matrix plan has a limited width, you may have the prospects of having more than one sponsor. You may not be placed under the person who recruited you, but somewhere in his downline.
- Again, due to the limited width, you may not need to require as many people as required by the plan definition. There may be a chance that your sponsor has recruited more people than required. So, they may be put in your downline, thereby reducing your toil.
Are there any disadvantages?
- There is a variable pay system as discussed earlier, depending on the levels. So, there is a natural tendency among the members to assist those distributors in higher pay scale than in the lesser scale.
- The plan is difficult to explain to potential new recruits, again due to the confusing nature of the variable pay scale as per levels.
- It has been observed that many new recruits are lured in with the promise of merely having to invest and the sponsor taking care of building the downline, showcasing the limited width scenario.
How are the compensations calculated for a 2×2 forced matrix plan?
Consider the diagram given below. We are explaining the calculations with respect to A.
We are making the following assumptions.
- Joining fee of $100 is required to be paid to the company by each new recruit.
- First Level Commission = $30
- Second Level Commission = $20
- Referral Commission = $10
Level 1 Calculation (B & C are introduced by A)
For A, Referral commission = 2 x $10 = $20
Level commission = $30 +$ 30 = $ 60
Level 2 Calculation (D & E are introduced by B; F & G are introduced by C)
For A, Level Commission = $20 x 4 = $80
Hence, the total commission earned by A is $80 + $80 = $160
One of the most extensively used MLM plans in the world, Matrix MLM plan is definitely on a rage ever since the beginning of network marketing. If you are a fairly experienced network marketer, Matrix MLM plan can be very fruitful in earning a fair income. Try out our free Matrix MLM Software Demo to experience the features of Matrix MLM Software.