Board compensation plan
Board compensation plan enables both business and individual growth through different boards within a single tree. A board plan is a hybrid option usually combined with other compensation plans like matrix, binary, monoline, etc.Read offline
Board plan - An introduction!
Board MLM plan is one of the most popular compensation plans. The distributor or member who met or qualified certain criteria set by MLM companies will get a new position in the next board. A board is a new tree formed for those members who achieve these criteria. Board plan is also known as the recycling matrix plan.
Multiple boards exist in a compensation tree for different criteria based on company rules and regulations.
A board plan suits best for all companies who want to maximize the business profit and the efforts of distributors.
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How does the board plan work?
Let us explain the board plan in terms of matrix board compensation. A board plan can be implemented with other MLM plans too. Board hybrid plans are discussed in the final section.
The board compensation plan comes with multiple boards like mentioned in the above section. In a board matrix plan, a board is nothing but a normal matrix cycle. Even Though a company chooses 2x2 matrix cycles there will be different matrix cycles like 2x3, 3x2, 3x4, etc. in the board plan.
All the boards in a matrix board plan work similar to a matrix plan. Like a 2*2 matrix plan,
- There will be 2 business levels
- 2 members in level 1, and 4 members in level 2
- In total, there will be 7 members
Once board 1 completes i.e. 7 members fill the positions of 2*2 matrix cycle.
The frontline member gets a new position on the new board (board 2). Thus this member gets another sales opportunity with multiple re-entries. Without paying any more, the frontline member who completes a matrix cycle gets an additional position, hence known as the recycling matrix.
There is a misconception about the board plan - ‘breakaway’. There is no breakaway in the board plan, instead here the distributor who completes the board cycle gets a position in the new board without losing the position in board 1.
Now his matrix board will look like,
Likewise, the next person who completes his/her matrix cycle from board 1 will get a new position on board 2. Anyone who completes a matrix cycle will be promoted and there are no position concerns.
Similarly, if a distributor from board 2 completes the matrix cycle (board 2), then that distributor gets a new position on board 3. This cycle follows until there are no boards left in the system. MLM companies mostly prefer 3-4 boards or matrix cycles as per their requirements.
Well, a person who proceeds to new boards will have multiple positions - all the previous positions, and the new position.
Number of positions available for distributors in full board cycle = All the positions achieved previously + new positions achieved
Apart from this, some companies offer re-entry options too. Re-entry means alongside promoting the person to a new board they will also provide an extra position in the completed board matrix cycle.
For example, the person who completes board 2 will get three positions.
See, in the picture, member 1 has three positions 1 has three positions in the tree -Two positions on board 1 where first one is initial position when she joined the tree and a re-entry position she received after completing board 2. Also a new position on board 2 when member 1 completed board 1.
This process might continue on further boards too. So if the member 1 completes his/her board 2, she will get a new position on board 3 as well as re-entry position on board 2.
The opportunities are thus vast for distributors. It’s this point that triggers the companies, distributors will try to maximize their effort. This ultimately benefits for none other than the companies itself. A perfect option for both distributors as well as the company.
This is how the board MLM plan works.
Compensations in the board plan
Compensations are highly demanding in the board plan and distributors receive rewards for their efforts.
Advantages/benefits of board MLM plan
Maximize individual effort: Distributors get maximum effort as compensation on individual basis rather than a group
Active business: Business becomes active because of the growth rate and companies get beneficial
Plan within a plan: The concept of splitting distributors into boards is a plan within another plan which nourish more benefits
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