Glossary
Matrix Plan
A matrix plan is a compensation plan that limits both the width and the depth of a distributor's organization to a fixed grid, commonly written as width by depth, such as 3 by 7. When a distributor's own recruits would exceed the fixed width, the company places the overflow under another distributor in the matrix, a mechanic called spillover.
Also called: matrix compensation plan, forced matrix
Why it matters
The fixed grid caps how many people can occupy each level, so the total number of possible earning positions in a full matrix is a known, finite number. Spillover placement means a distributor's earnings can depend partly on where the company places other people's recruits, not only on their own recruiting.
Example
In a 3 by 7 matrix, a distributor can have at most 3 people on their first level. A fourth personally recruited person spills over onto the first level of an existing frontline distributor instead.