Hybrid MLM Plan vs Matrix MLM Plan
Multi-level marketing (MLM) is basically where individuals engage to sell goods to customers, often by word of mouth and direct sales. MLM business is carried out through different multi-level marketing plans. Each has distinctive qualities of its own, and MLM companies pick which to use based on their business objectives. Two such plans are the Matrix MLM plan and the Hybrid MLM plan.
Even though Matrix MLM plan and the Hybrid MLM plan have certain things in common, they also differ greatly. The comparisons are as follows:
Basic concept
Hybrid MLM Plan: Hybrid multi-level marketing strategy combines several different MLM plans. To meet the needs of the MLM company and its distributors, it was created to establish a balance between different plan models. More precisely, Uni-level MLM plan and the Binary MLM plan are combined to create the hybrid MLM plan. Under this plan, everyone is a distributor. No sales leaders needed. An affiliate is paid on distributors down to a specific number of levels. The multi-level marketing companies employ this strategy to expand and advance their businesses.
Matrix MLM Plan: The Matrix MLM plan, which operates on the premise of a compensation structure with width and depth, is a well-known one in the MLM industry. This plan organizes distributors in a specific matrix structure that restricts the number of distributors you can sponsor on your first level. Thus, Matrix plan limits the width and motivates individuals to hire more members in the downline.
Plan structure
Hybrid MLM Plan: The plan starts with a user recruiting two members on the following level and placing them on the left and right leg, while additional recruits are pushed over to the following level beneath the two members previously mentioned. The depth of the level keeps increasing. Even when the legs alternate movements, a balance between the two is still required.
Matrix MLM Plan: The distributors are positioned in a structured matrix style, which is commonly shown as a 3×3, 4×4, or 5×5 grid. The matrix’s width and depth might change depending on the company’s compensation strategy.
Width and Depth
Hybrid MLM Plan: Depending on the combination of MLM structures utilized in the plan, the organization’s width and depth may change. For instance, the uni-level structure may have an unlimited width and depth but the binary structure in a hybrid plan may have a limited width of two members per level.
Matrix MLM Plan: The width refers to the number of distributors a person can sponsor on their frontline, while the depth represents the number of levels within the matrix structure. A 3×3 matrix, each distributor can have up to three frontline distributors and the matrix can go down to three levels.
Complexity
Hybrid MLM Plan: The incorporation of different MLM plans allows for greater flexibility and customization in designing the earning potential for distributors. The plan is customized in such a way all members have equal responsibility; in this way, the team grows larger.
Matrix MLM Plan: The MLM Matrix Plan is adaptable, allowing the MLM company to increase the width of the Matrix tree in accordance with its compensation structure. Due to its width restriction, this plan is both simple to manage and risk-free.
Compensation
Hybrid MLM plan: Multiple income sources, such as direct sales commissions, bonuses for recruiting new distributors, team commissions based on group sales volumes, leadership bonuses, and other incentives, bring individuals attractive earnings. This can vary considering the plan and objectives.
Matrix MLM plan: In the Matrix compensation structure Direct sales commissions, matrix bonuses, level commissions, and other performance-based incentives are common forms of pay offered by MLM systems. Depending on the MLM organization and how its plan is designed, the unique compensation structure could change.
Tailored Commission Structures:
Hybrid MLM plan: A hybrid MLM plan enables commission structures to be tailored based on product lines, sales amounts, or downline activities. This adaptability helps businesses to respond to shifting market conditions, product categories, or marketing tactics while still offering distributors alluring incentives.
Matrix MLM plan: In the matrix MLM plan, there is no tailored commission structure and Commission is limited up to a certain depth.
Spillover
Hybrid MLM plan: The hybrid plan can potentially benefit from spillover, where an upline distributor places new recruits in the downline of their frontline distributors. Distributors may benefit from a quicker organization-building process as a result.
Matrix MLM plan: Spillover is also a possibility in matrix plans, but it often only extends as wide as the matrix. After the frontline roles are filled, spill over may not be advantageous for new recruits.
In conclusion, the hybrid MLM plan includes aspects from several plan models, allowing more flexibility and customization possibilities, whereas the matrix MLM plan is built on a fixed matrix structure and limits the number of frontline members. The decision between the two is based on the MLM company’s particular objectives, offerings, and business models.
