It is important to understand matrix structures especially when considering a multi-level marketing business opportunity. By understanding matrix structures, the opportunity seeker will have a greater advantage to understanding how mlm works. More importantly, understanding matrix structures allows the opportunity seeker to have a better understanding of what he/she may be able to accomplish.

Two of the most common matrix structures are the standard 'forced matrix' and ''unilevel matrix'.

FORCED MATRIX

The standard forced matrices are limited by width and depth. As in the 3 x 5 forced matrix example below, we can see the level depth is limited to 5. The level depth is usually very easy for everyone to see and understand. It is the width that tends to confuse people.

The width is a simple mathmatical equasion of multiplying. Since the width in the matrix below is 3, the first level is lmited to 3 members. Multiplying the width number of 3 times itself, equals the second level number of 9. Multiplying the second level number 9 by the width of 3 equals the third level number of 27. Multiplying the third level of 27 by the width number of 3 equals the fourth level number of 81. Multiplying the fourth level number of 81 by the width number of 3 gives equals the fifth level number of 243. This means to fill a 3x5 forced matrix to its full capacity, the total number needed is 363.

Forced 3 x 5 Matrix

Level----Members Needed to Fill Level
1----------------3
2----------------9
3----------------27
4----------------81
5----------------243
__________________________
Total Members Needed = 363

I have demonstrated a 3 x 5 forced matrix here because it can be one of the best matrix structures in regards to forced matrices. If a matrix is too small, normally, little income will be made. If a matrix is too large, it can be overwhelming and intimidating to the member.

This is not to say other forced matrices are not good. Business opportunity seekers must keep in mind the payouts per level and the total payout of a completed matrix. Cost of the opportunity, level payouts, total payouts, and company profit percentages are all tied together. The overall picture must be viewed and matrices is one area that tends to not be scrutinized as much as it should be.

UNI-LEVEL MATRIX

Unlike the standard forced matrix, the unilevel matrix is not limited to width. View the example below.

Unilevel matrices can have great advanatages in comparison to forced matrices. Perhaps the greatest advantage is 'no limits' to the amount of people you can actually have in your downline. If you sponsored 100 people, all 100 would be on your first level. Your first level sponsors people that will appear on your second level. Your third level members are comprised of those sponsored by your second level. Your fourth level members are comprised of those sponsored by your third level...and so on in regards to how deep the matrix is.

Just as with forced matrices, the overall consideration of costs and percentages must be scrutinized.

4 x Unilevel

1 - unlimited
2 - unlimited
3 - unlimited
4 - unlimited

BINARY

Binaries can be the most confusing matrix structures on the planet. A lot really does depend on the opportunity layout. There are extreme differences within binaries from company to company, mlm to mlm, program to program.

Real binaries consist of two legs, a left and a right. Stipulations are placed in accordance to how many members are within the two leg structure. For example, all members in the program may fall willy nilly down the right leg...so even if a member did not sponsor anyone, that member may see hundreds if not thousands of members in his/her right leg. Although exciting to look at, not so when viewing the left leg. The left leg, in this scenario, would be the determining leg for earnings. If the member sponsored no one at all, the member would earn nothing even though he/she may see hundreds or more in the right leg.

Left Leg - earnings based on percentage of L to R
Right Leg - earnings based on percentage of L to R

Binaries must be looked at very closely within the program otherwise it is easy to be confused. Many programs allow the member to place the newcoming member to either leg of his/her own choosing. Having 3 members in the right leg and 1 member in the left leg may kick out earnings...then again, it may not...depends on the program.

TIER

Affiliate programs usually consist of tiers. Still yet, this can be a very confusing terminology since many mlm programs call themselves affiliate programs. Multi-Level is defined as more than two. Hence 'tier' is actually two or less. Here again, today, you'll come across programs that may have more than two tiers and label themselves as an affiliate program.

As the standard, the first tier would be the member and the second tier would be that members sponsored members. In other affiliate programs, the member would not be his/her own first tier and his/her sponsored members would be considered the first tier.

Within real affiliate programs with tier structures earnings are made when the affiliates sell a product or service. The member may also earn when a member in his/her tier structure makes a sale. See example below.

Free TV Affiliate Program

Mary joins
Mary sponsors John

Tier 1 : Mary
Tier 2 : John (Mary's personally sponsored)

John sells tv
Mary earns $10 from John's sale

SUMMARY

There are a variety of matrix structures. The above is not all inclusive. Two companies may have the same matrix structure but due to various differences of each, earnings could be greater in one. It is important to consider and understand the complete information of the business opportunity before joining. Understanding how matrices work, is one large part of understanding how the opportunity works and how much income you may be able to earn.