What is a Matrix MLM Plan?
A Matrix MLM (a.k.a. Forced Matrix) organizes each distributor into a fixed grid such as 3×3, 4×5, or 5×7 where the first number is the width (frontline limit) and the second is the depth (levels paid). When a distributor has filled their frontline width, any new recruits spillover down to the next available spot in their downline.
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Table of Contents
How Matrix MLM Works (Width × Depth)
In a 3×3 matrix, each member can directly sponsor up to 3 people on their first level. The plan pays commissions up to 3 levels deep. New signups beyond the width limit are placed in the first available position below (spillover), encouraging team building and depth growth.
Payout Methods in Matrix
- Level Commission: Fixed/percentage payout per level (e.g., L1=₹200, L2=₹150, L3=₹100).
- Product/Service PV: Commissions derived from PV attached to SKUs (e.g., 10 PV per subscription).
- Cumulative Pool: A pool from a share of sales volume, split among qualifiers.
Common Bonuses to Mix with Matrix
- Referral Bonus: Direct sponsor reward on every personal signup.
- Matching Bonus: Earn a percent matching of your downline’s matrix income.
- Rank Bonus: Extra payout on crossing rank thresholds (volume + active legs).
- Re-entry / Refill: Auto-create a new position once a matrix/cycle completes.
Worked Example: 3×3 Matrix (Simple)
Assume level commissions per active position: L1 = ₹200, L2 = ₹150, L3 = ₹100.
- Level 1: 3 members × ₹200 = ₹600
- Level 2: 9 members × ₹150 = ₹1,350
- Level 3: 27 members × ₹100 = ₹2,700
Total potential per filled 3×3 = ₹4,650. Actuals vary with qualifiers, activity rules, and caps.
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Pros & Cons
Pros
- Encourages team depth with spillover.
- Predictable structure for planning incentives.
- Great for subscription or curated product lines.
Cons
- Can stall if width fills but depth is inactive.
- Needs careful anti-abuse & KYC policies.
- Too many bonuses can overpay without caps.
Compliance & Good Practices
- Real Products/Services: Income must be tied to genuine customer value.
- KYC/AML & Taxes: Enforce verification and region-specific tax rules (GST/VAT).
- Transparent Disclosures: Show income disclaimers & average earnings statements.
- Caps & Qualifiers: Rank + activity requirements to earn on lower levels.
Must-Have Software Features for Matrix MLM
- Flexible Plan Engine: Set width × depth, level payouts, PV rules, ranks.
- Smart Placement: Spillover, sponsor preferred, or balanced placement.
- E-Wallet & Ledgers: Wallet types, withdrawals, fees, multi-currency.
- Compliance Suite: KYC, KYB, GST/VAT invoicing, earnings disclosures.
- Fraud Controls: Duplicate detection, device/IP checks, activity audits.
- Storefront: Subscriptions, bundles, coupons, tax-inclusive pricing.
- Dashboards & Reports: Genealogy, rank tracker, payout statements, exports.
- APIs & Webhooks: CRM/ERP, shipping, SMS/email, webhook events.
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Matrix MLM FAQs
Q1. What’s the difference between Matrix and Unilevel?
Matrix limits frontline width and paid depth; Unilevel has open width and typically pays
more levels with activity qualifiers.
Q2. Can I mix Matrix with Matching Bonus?
Yes. Many plans pay a percent match on a member’s matrix earnings across 1–3 generations.
Q3. Which matrix size is most popular?
3×3 and 4×4 are common; choose based on product price, margins, and target payout.
