Matrix plans allow team members to have a forced structure to the sales organization they build. Wether it is a forced matrix or matrix built on placement, every matrix is built with a limited amount of front-line positions available to every affiliate. This forces “spill-over” into sub-affiliates organizations and promotes a more “socialistic” approach to direct sales or network marketing(the idea of “something for nothing”).
This approach can also be seen as a valuable tool to aid in “teamwork” for many groups and has been popularized by such. The most famous success story of this model is the company Melaleuca with their long-standing matrix compensation plan.
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Common terms in a matrix: