MLM Matrix Compensation Plans - Do They Work?

Have you joined MLM Companies hoping to get spillover? Maybe you saw an ad promising huge spillover if you joined right away. I have to be honest; I have joined many many programs like that thinking that I was going to get spillover from my upline's efforts.

Guess what? I was disappointed every time I joined with such an intention. Not because I didn't get any spillover, many times I got plenty of spillover, but I didn't make any significant amounts of money. Why? Because there was only so much my upline could do for me, they could only put so many people under me, and they could not qualify me to earn at higher pay levels. In the end, it was up to me to continue the growth. I won't get into the details of how Matrix Pay Plans and Spillover works, I will assume here that you are familiar with the concepts.

What I want to emphasize here is that no company in its right mind, MLM or not MLM, will pay you for doing nothing. The compensation plans are designed to reward those who generate business. Companies can only afford to reward those distributors who create growth for the company; otherwise, they will not last very long. So if I join an MLM company with the hopes of making money by not doing anything, I am going to be disappointed. I may receive some small checks, but nothing to get excited about.

I am sure there are people who will argue that there are opportunities out there that have no sponsoring requirements, all you have to do is sign up and make money with them. Well, all I have to say to that is that they won't last. It simply doesn't make business sense. Why would someone want to pay you for doing nothing?

So when people don't make money in a Matrix Plan by depending on spillover, it is not the Matrix Pay Plan that's failing, it is the individual that's failing, because of the do-nothing-and-make-money attitude.

The Matrix Pay Plan is an excellent concept if approached with reasonable expectations and promoted responsibly by Network Marketers. By allowing you to put only a fixed number of people on each level, you are forced to help your downline grow. More teamwork is created and relationships are formed. Fixed number of people on each level also helps you build deep, and building deep means more long-term security for you, your upline and your downline.

Matrix Pay Plans make it easy to teach duplication to your downline. If just 2 people are allowed on your first level, then you can teach everyone in your downline to get their 2 and then help the people under them to get their 2 and so on. Spillover from all the activity can help speed up the growth and create momentum for the whole team.

As long as you don't get into an MLM/Network Marketing business that uses a Matrix Pay Plan with the expectation of making a fortune without doing any real work, you will find this type of a Pay Plan to be a great way to build a team that works together to produce long-term residual income.