What is the 3×9 Matrix MLM Compensation Plan? And what should you know about it?
This is a new and popular compensation plan in the network marketing industry that many companies are using. It’s definitely gaining in popularity.
What I want to do in the paragraphs below is teach you more about it, and talk about the good and the bad things about this compensation plan.
A matrix compensation plan simply means that you are limited to how many people you can personally sponsor on your first level. In other words, you have a SET amount of open positions on your first level. The most common amounts are 3, 5, 7 or 9.
For example, if you have five set positions on your first level, anyone you sponsor after your fifth person would go on your second level or below. You can still sponsor as many people as you want, you’re just limited to where you can place them.
- 3 positions on your first level
- 9 positions on your second level
- 27 positions on your third level
- 81 positions on your fourth level
- 243 positions on you fifth level
- 729 positions on your sixth level
- 2,187 positions on your seventh level
- 6.561 positions on your eight level
- 19,683 positions on your ninth level
*** Total of 29,523 positions/people in your team
This might sound exciting to you initially, but what you don’t realize is that your tenth level would be 59,049 people alone! That’s more than twice the amount of people on your first through ninth levels combined.
If you are someone who knows how to build a big team, joining a matrix compensation plan really limits you (as I see it). It can definitely limit your income compared to other types of plans. The real money in MLM always comes in depth, and if you are limited on how many levels you can get paid on, you will leave a lot of money on the table.
Another problem I have with matrix plans is that they encourage laziness in your team. People will expect you to place people on their team to help them, and they know that you will have to because you are limited in your own spots. I don’t like this idea and I’ve found that most network marketing leaders don’t like it either.
Of course, not everything is bad about the 3×9 matrix plan either. Some of the good things are that you will have people in your upline helping you add members to your team. And you will be helping your new team members earn a small check too, from your efforts. In addition, getting paid on 29,000+ people potentially is pretty exciting.
At the end of the day, only you can decide what type of compensation plan is best for you. I think this plan is a great deal for the part-timer just looking to make a few hundred extra dollars per month. And for the heavy hitter, I would recommend other plans, such as a uni-level.