Fixed Matrix Comensation Plan

The fixed matrix is a unilevel plan with fixed width with the member being paid percentage on each level. In other words, you could have a matrix 5 wide by 5 deep. This would you give you a total of 3125 members in a fully loaded matrix.

Aim
The aim is to develop a full matrix. To do this, the member must have 5 recruits who have 5 recruits and so on until the matrix is full. Unfortunately, not everyone plays the game. A successful member would therefore land up recruiting more than 5 people with the overflow being placed into the wholes in the matrix. For a person who plans on doing nothing this is a fantastic plan. You join, do nothing, your team grows and you get money. For the people doing the work it can be very frustrating. As you can probably tell, I am not a great fan of te fixed matrix plan.

Drawbacks
The fixed matrix plan suffers from the same drawbacks as the unilevel plan. Due to the limitation in width, it requires a great deal more creativity to make it profitable.
Once the matrix is full, the member is required to take up a second position in order to grow his business.
Sales happening below level 5 in this example would be lost to him.
Inactive members in his matrix could lead to loss in profit.

Making the fixed matrix plan work
Making this plan work requires a little more creativity on the part of the company:

• Compensation Compression
  This is a mechanism that allows a member to be paid on sales happening below his 5th level by skipping inactive members in his matrix. Let’s say you have a team that is 5 levels deep and your frontline member is inactive. This would effectively give you just 4 levels to earn from. Compression compensates for this by paying you on the 6th level. If In this way you are always paid on five levels.
  
• Matrix compression
  This mechanism literally removes inactive members from your team and places their downline member in the gap. By compressing the team in this way, you eliminate the gaps created by inactive members.
  
• Multiple positions
  In most cases, the only way to build a team is to hold multiple positions in the matrix. This is great for the company as they can recruit the same person multiple times. It is not so great for the member as they are having to buy additional positions in a company that they already belong to.
  
• Value Positions
  Some companies will sell you a more expensive position that allows you to generate a higher percentage from each level.
  
• Promotions
  It is also common practice to create a rank structure that pays greater commission on deeper levels. As the member rises in rank, they are paid greater percentages or they are paid on deeper levels.
  

Conclusion

I feel that the disadvantages of the matrix plan far outweigh the advantages. I would therefore not recommend this type of plan to a client.