There are two important compensation plans in a direct sales business. They are binary compensation plan and matrix compensation plan.In a binary compensation plan, the distributor has two legs. One weaker leg and stronger leg. Commissions are based on the weaker leg. Since commissions are based on the weaker leg, distributors are encouraged to maintain equilibrium between both legs. In a matrix compensation plan, they have fixed width and depth. The new recruits from uplines automatically fill available positions in the matrix, helping fewer active members. The companies using matrix compensation plan success depends on how efficiently team members fill their allotted positions.  

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