Advantages and Disadvantages of a Forced Matrix
Affiliates can earn a residual income by promoting a company’s products or services. Due to the nature of the opportunity, a significant portion of the revenue is derived from referral commissions paid by the company for each successful referral signup. Reference positions in a downline are commonly known as a matrix. MLM companies pay multi-tier commissions on the affiliate’s referral downline, two-tier affiliate companies pay two-tier affiliates.
Although affiliates are encouraged to endorse their referrals, not all companies allow referrals to be repositioned in their downline matrix. Moving new referral signups to the downlines of your direct referrals helps them earn commissions sooner and helps build a retentive downline. Even when the company allows it, most limit the repositioning of new referrals to one or two levels deep. However, with Forced Matrix, there are advantages.
A forced matrix is an affiliate compensation plan that uses a simple matrix system with a set width and depth. For example, a 6×6 matrix consists of six references at the top level and six references in each leg, making thirty-six references in total. Most affiliate companies pay commissions from a limited number of levels in your downline, usually between two and five levels.
One of the main advantages of the Forced Matrix is the virtually maintenance-free strategic positioning of new referral records in a downline. Affiliates can focus on driving traffic to their affiliate links and communicating with their referrals, rather than having to constantly check and manually reposition direct records as they are added.
Another advantage is helping your referrals; It is estimated that 95% of all affiliate marketers fail to generate a residual income. They struggle to learn everything and earn money at the same time. Using a forced matrix, your referrals will receive records of their own efforts. This encourages referrals to stick around and thus contributes to a growing and retentive downline.
Although the advantages of Forced Matrix outweigh the disadvantages, for the most part, some drawbacks remain unavoidable; MLM companies pay a commission percentage based on the level at which the referrals are positioned in the matrix. Therefore, the top level referral positions typically generate the highest commission percentage. Unless the company offers an infinity bonus, which rewards affiliates when they build their downline further down, affiliates would rather build the highest-paying tiers only at the top.
Despite some drawbacks, Forced Matrix is an efficient way to build downlines with most MLM companies. It will automatically position new referrals in the most strategic positions in the matrix, helping the affiliate free up time to further advertise the program and help referrals. Forced Matrix is just another affiliate tool, after all, it doesn’t replace the person promoting and supporting your referrals. Use it wisely and you will do well.