Today Multi-level marketing (MLM) or network marketing is becoming more and more popular around the world as more and more individuals join to achieve their financial goals. Due to the impact of Covid 19, its value increased in society. Today there are many MLM companies in the world. Different businesses in different countries choose the business/marketing strategies that best suit their needs. Software companies provided the MLM software for MLM companies according to their MLM plans. Some common MLM plans used by the MLM businesses are binary, matrix, board, generation, unilevel, hybrid, and differential plans.
In this article let us draw a comparison between MLM Matrix Plan and MLM Board Plan. These plans are the two popular compensation plans in the network marketing industry. Although the two plans have the same tag "Pay Plan", these business models works in completely different ways. Like many other compensation plans, these plans have their own pros and cons, strengths and weaknesses.
MLM Matrix Plan
The MLM Matrix Plan is a popular MLM plan in the MLM industry. It is also called a forced matrix MLM plan. It works based on the compensation structure. The MLM matrix plan consist certain width and depth. The basic structure of the MLM matrix plan is identified through the width and depth of the matrix.
The MLM matrix plan uses a top-to-bottom and left-to-right searching system. In contrast, in a Forced Matrix plan, the member may be put anywhere he or she wants. The most important advantage of this plan is its narrow width and a small number of customers. Unlike other MLM plans, the MLM Matrix plan restricts the number of distributors you can sponsor on your first level, usually less than 5. This MLM matrix plan is also known as the 2x2 Matrix cycle plan. Commonly used MLM Matrix plans are 4x7, 5x7,2x12, and 3x9.
The most popular and unique feature of MLM matrix plan is its spillover ability. It helps you to motivate your down line recruiters to recruit more into their down line. The MLM Matrix plan calculator makes it simple and easy for your matrix plan commission calculation. It provides bonuses like matching, sponsor, position, level to members.
MLM Matrix Plan Software
Cloud MLM Software Solutions presents MLM Matrix Software for our customers. This web-based application helps our customers to keep track of on down line’s earnings and expenditure. Our MLM Matrix Software decreases the manual work and it is very effective for MLM companies of all sizes.
Advantages of MLM matrix plan
- The Spillover ability of the MLM Matrix Plan makes it unique
- It is very flexible to use. The users can adjust their company as they wish.
- The MLM Matrix plan is very simple, convenient, and easy to explain.
- MLM matrix plan is easy to manage.
- The restriction in width minimizes the risk of MLM business.
- When filled your frontline recruiters, then you can focus on developing your frontline recruiters into leaders.
- In the MLM Matrix plan, you can earn money in different ways like bonuses and rewards.
MLM Board Plan
MLM Board plan is another one of the famous MLM compensation in the MLM industry. It is also known as a revolving matrix plan or matrix cycler. In this plan, a group of members’ works as a team called Board. The group of members work in a team and when the board is filled with a set number of members, the board divides into two sub-trees.
How Does MLM Board Plan Works?
In the MLM Board Plan system, the board of the members frequently subdivides while it becomes full and the top positioned member of the board gets put to another board. This arrangement occurs naturally. The movement of the members is based on the number of referrals.
When you join the MLM Board plan, a vacant board will be assigned and you will have to fill the down lines under you by recruiting new members. The structure, number, and dimension of the down lines will be varied in each company.
Commission/Bonuses in MLM Board Plan
- Referral bonus
- Matching bonus
- Level commission
- Position bonus
- Board completion bonus
- Board split commission
MLM Board Plans
Popular MLM Board plans are,
- Single Board plan
- Multi-Board plan
- Shuffling Board plan
- Auto Filling Board plan
- Manual Filling Board plan
Features of MLM board plan
- Extensive Board Income
- The Recycling entry system into the board
- Auto splitting of boards
- Finding an associate board .
- Auto promotion of distributor to a higher board and many more
Comparison between MLM Matrix Plan and MLM Board plan
MLM format or MLM system
MLM Matrix plan is a forced matrix-based plan whereas MLM Board plan is a revolving matrix or recycling entry system-based plan.
ML M Board plan is very easy to apply and implement when compared to MLM matrix plan. In the MLM Board plan, a group of members’ works as a team called a board whereas, in the MLM matrix plan, the down line distribution depends on fixed width and depth.
Down line Distribution
Auto splitting of the board occurs in the MLM Board plan while spillover occurs in the Matrix plan depending on the width and depth parameters.
MLM bonuses provided in the MLM Matrix plan are less when compared to the MLM Board plan. MLM Board plan provides extensive board income. The commission provided by the MLM Board plan is a referral, matching, level, position, board completion, and board splitting bonuses while bonuses provided by the MLM Matrix plan are sponsor, level, position matching, and forced matrix bonuses.
Down line development
The down lines are extended easily in the board plan as it is based on a recycling entry system and auto-promotion of sponsor into a higher board while the MLM Matrix plan is restricted to the width and depth of the plan.
Comparison between MLM Matrix Plan and MLM Board plan
In short, the two MLM Plans are the famous MLM plans in the present day. Cloud MLM Software Solutions supports these two type of MLM Plans and anyone can use our free MLM software demo to compare these two plan’s
As a famous MLM software development company, Cloud MLM Software Solutions provide the standard features recommended for effective multilevel marketing businesses.