In a world full of different MLM structures, the Board MLM plan stands apart for its unique model. If you are looking for growth in your MLM business, the Board MLM plan can be perfect for you. Read on to learn more about how it works and why you can opt for this MLM plan to grow your business.
There is a rise in MLM business models adapting multilevel marketing structures to boost their product sales. The board MLM plan is one such network marketing strategy gaining popularity recently. It is a simple network structure with limited members. This makes it a perfect MLM plan for businesses that look for structured and strategic growth.
The board plan in MLM is a unique network marketing plan with a fixed number of people in the network. People also call it the Revolving matrix board plan MLM. Under this plan, each distributor has a board with a fixed number of positions to fill below. They earn commissions when they fill recruits in these positions. This kind of MLM structure helps marketing companies expand their network and have complete control over their members.
They can also choose to operate any number of boards simultaneously. It reduces the chances of losses in operating an extensive network where not all members may be active. It can also restrict unauthorized movement and storage of products within the network.
The Board MLM plan is also called the Revolving Matrix plan. This is because of the revolving position of the distributor. Once a distributor fills a board, he is promoted to a new board without losing his position in the previous board. This way, he gets multiple re-entry positions and bonuses every time he completes a board. The cycle continues until there are no more boards left.
The number of boards may vary depending on the company’s marketing requirements. The Board plan structure is usually limited in terms of width and depth. For example, if a company employs a 2X2 structure, there will be two members in the first level, and there will be two levels only.
The below example will help you understand the concept more clearly.
Distributor Y joins a network. He has two empty positions to fill below.
The next day, distributor Y, makes two recruits A and B, So, the first level will have A and B.
Now A and B each have two slots to fill below them. So, there are 4 slots to be filled in the second level. When they finish filling these slots, the board will be complete.
Subsequently, A recruits two new members into the network- C and E.
Similarly, B recruits two new members- D and F.
At this stage, the company promotes Distributor Y to a new board as he completes the board. He starts with the recruiting process again on the new board.
Recruits made by each member will be placed directly below them. They will be responsible for training and guiding them. They will also receive a percentage of sales made by the recruits.
Board MLM is one of the popular choices of marketing structures that MLM businesses can implement in their organization. Under the MLM board plan, firms can have multiple boards operating at various levels. It also makes segregating the network into teams and regions easier, making it ideal for organizations that have multiple product categories in their portfolio.
The reasons why MLM business should opt for a board MLM plan are:-
The MLM board plan is best for a business that requires a dynamic network structure. It can help organizations customize the network’s structure to suit their needs. The network matrix has a 1-2-4 or a 1-3-9-27 structure.
It gives top members complete control over the marketing network.
Limited people joining the network also means small, manageable payouts.
It encourages top members to recruit actively, resulting in network growth.
A limited marketing team reduces losses in training, member management, etc.
Board MLM compensation plan helps companies disperse payouts to their network marketing members. These payouts include a mix of board completion bonuses, re-entry bonuses, level commissions, sponsor bonuses, and referral bonuses. The organization calculates these payouts based on the criteria set by them.
The Various Commissions and Bonuses in Board MLM Compensation Plan are:-
A distributor receives a board completion bonus when he recruits new members and completes the board. The system promotes him to the next board, where the recruitment process starts again. This way, every time distributors complete a board, they are eligible for a board completion bonus.
A sponsor receives a re-entry bonus when their downline completes the board. The sponsor then gets a re-entry position on the same board.
A sponsor receives level commissions when they fill all the positions directly below. They also receive a percentage of commissions when their downlines complete a level below them. The percentage of the commission may vary based on levels.
Distributors receive a referral bonus when they introduce new distributors or clients into the network. This helps them actively promote the company and its products.
The organization provides leadership bonuses to distributors for consistently achieving targets. It also recognizes distributors whose team brings the highest number of sales in the network.
Distributors receive the rank achievement bonus when they are promoted to higher ranks within the MLM network. This helps them stay motivated to aim for more sales and consistently set new benchmarks.
Under the Board plan, each distributor gets an empty board with limited slots to fill in the downline. The system promotes him to the next board once he fills these slots.
Commissions in the Board MLM plan usually depend on each member. If a distributor completes a board below him, he receives a board completion bonus. Similarly, members receive various bonuses fixed by the company upon fulfilling certain criteria.
A Board MLM plan can be suitable for new MLM companies looking for a small and manageable marketing network. They can also focus on their core activities without having to worry about recruiting and training new members.
