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.