Of all MLM compensation plans, the forced matrix model is probably the simplest to understand.
The basic matrix model involves two size factors, A x B.
A is your frontline and is the number of levels wide your matrix is. It is comprised of members you personally refer to your plan.
B is also a number and is the number of levels deep your matrix is. Some compensation plans cap this number, others don’t.
Fixed Matrix Model
This type places limitations on your standard matrix, usually in the form of size restrictions. Typically, there will be a cap in the form of A x B so as to trigger a cycle event.
A cycle is what happens when the matrix fills up and typically involves the person at the top of the matrix ‘cycling’ out and being rewarded with a commission payment.
After cycling the member is then placed into another existing matrix within the company, or at the top of a new fixed matrix. From here the member attempts to fill up the matrix again for another commission payout.
Fixed matrices are usually capped at small numbers (2 x 3 or 2 x 2 are quite common) so as to reward regular commission payouts for those who mass recruit into the business.
Due to the nature of the fixed model it is commonly affected by what’s called spillover.
What is spillover?
When you join an MLM company with a fixed matrix compensation plan model, you’re placed at the top of a new matrix. This matrix however is a branch of your upline’s matrix, which in turn is a branch of their upline.
Spillover is what happens when someone above you in a parent matrix fills up a spot on their matrix which corresponds to a spot in your downline on your matrix.
Say for example you’re on the frontline of your uplines fixed matrix and your upline fills their frontline. The next level down (the frontline of your matrix) can then be filled over time by the recruiting efforts of your upline as they fill up the other levels of their own matrix.
Here’s an example:
In the above matrix you can see how your own matrix fits in with that of your upline. For spillover to occur, let’s say your upline has filled their frontline (spots A and B), which you are on.
You directly recruit someone to spot C and then your upline manages to recruit another member. Due to your frontline being on their matrix spot D is filled via your upline. Spot D being filled affects both your own frontline and the matrix of your upline.
This affect is called spillover and requires no effort on your part to fill a spot on your own fixed matrix.
Adapted from BehindMLM.com
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