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MLM Matrix Plans are Misleading

It seems that everyday now there is an MLM Startup that uses the MLM Matrix as a basis for the Compensation Plan

Just exactly what is an MLM Matrix?

An MLM Matrix is an MLM compensation plan that only allows a certain amount of distributors to be placed on any level. The rest is "Spillover" into the next nearest distributor downline from the personal sponsor in the next available slot in the downline

For example, let's look at a 3x8 Matrix

There can only be 3 distributors on the 1st level. There can only be 9 distributors on the 2nd level. There can only be 27 distributors on the 3rd level. This continues on down thru 8 levels.

Let's say you sponsor a 4th distributor

This person would fall to your 2nd level, underneath 1 of your 1st level distributors normally working left to right. This seem s great because you not only have added 1 more distributor to your group, but one of your 1st level distributors get's some help from you and get's a distributor placed on their 1st level.

The MLM Matrix Compensation plan was created to address a major problem in MLM Compensation plans. That is the need for sponsors to help their downline grow. In the old unilevel or stairstep breakaway MLM Compensation Plan s it was not unusual for a distribor to have over 50 people on their 1st level. What happened for the most part is that the multitude of distributors would drop out because of no help from their upline. The MLM Matrix was conceived with good intentions....but in practice thay are very Misleading

Let me explain.

If you have been around the Internet for any length of time and gotten on a couple of the MLM Guru's mailing lists you'll understand what I mean here, You may even be one of the victims.

You get an email from the MLM Guru. the headline states. "Prelaunch, Get in at the top and get my SPILLOVER". On the surface it seems like an excellent opportunity. Your thinking...Gee if I just sign up now, I'll get my downline built for me. All I have to do is sit back and collect paychecks. I'm on Easy Street Now!".

Let me tell you what's wrong with this scenario. The numbers will work against you...they ALWAYS do. Let's say you are number 125 to signup and end up on the 4th level of a 3x8 matrix

Now listen up closely here. You are lucky to be #125. Numbers this low are reserved for all the Guru's and their friends and family. A number this low..#125...would place you on the 4th level. The MLM Guru would have to sponsor 243 more people before you saw your 1st 3 distributors on your 1st level in this 3x8 MLM Matrix example.

That is even a tall order for the MLM Guru to accomplish. So you lose your money and drop out because you and the other people who joined did nothing to build a business but sit back and wait on spillover which NEVER happens. By the time you realize this..the MLM Guru has moved on to the next great MLM Matrix Launch to fleece even more sheep.

I'm not saying an MLM Matrix is wrong. It is how it is presented in the marketplace and the present "psychology" of the marketplace. That is, I can make money with no work on my part. When we all wake up and realize that you have to work to earn a living...the MLM Marketplace might change. The MLM Guru's are to blame for this attitude because they promote their program in this misleading way. Naming names is not what this article is about, maybe in a future article I will do that

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To learn more about MLM recruiting and how you can get real help, check out joe cotroneo's website at:

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