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How do matrix compensation plans work?

I have been offered to join a company with a forced matrix plan (3x7). Can someone explain how this works in practice? Is it true that the company fills positions for you, or is that just marketing hype?

4 Replies

Reading all these comments makes me realize how many people have been through similar experiences. Maybe we should start a support group for former MLM distributors. Not to bash the industry, but to help people process their experiences and move forward.

I have been offered to join a company with a forced matrix plan (3x7). Can someone explain how this works in practice? Is it true that the company fills positions for you, or is that just marketing hype?

I respectfully disagree with some of your points. Yes, most people do not make money, but that is true of any business. The SBA says 50% of traditional businesses fail within 5 years. At least with MLM the startup cost is low so the financial risk is minimal.

I completely agree with your points. I joined two different MLM companies and had very similar experiences. The monthly autoship alone cost me over $4,000 before I realized I was basically paying for the right to sell overpriced products.

My biggest piece of advice - never recruit someone who cannot afford to lose their investment. If a person is living paycheck to paycheck, you are potentially putting them in a worse financial position. Be ethical about who you bring into the business.

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