Test your custom matrix rules. We map your plan to a live, working Demo before you commit.
Who is matrix MLM software for?
Matrix MLM software fits MLM and direct-selling businesses that want a bounded, predictable width — no distributor's frontline grows without limit — and a clear, capped depth so payouts stay forecastable. It is commonly chosen for subscription-style products where team structure and steady, explainable commissions matter more than unlimited frontline recruiting.
Choose matrix when you want every distributor's organization to fill in a fixed grid (for example 3 wide, 5 deep) and for spillover to place extra signups into the next open position automatically. If you need unlimited width or a purely recruitment-driven binary balance, a unilevel or binary structure may be a closer fit; the compensation-plans hub compares all supported plans.
What is matrix MLM software?
Matrix MLM software manages a compensation plan with a fixed width (how many frontline positions each distributor may have) and a fixed depth (how many levels the matrix pays). A 3-wide by 5-deep matrix, for example, allows three frontline positions and pays commissions down to five levels beneath each distributor, while new signups beyond the width spill over to the next open position beneath the distributor's downline.
The matrix stays structurally finite by design. Sponsorship (who referred the member) and placement (where they sit in the grid) are stored separately, but the placement grid itself never expands beyond your configured width and depth — additional members fill deeper open positions rather than widening a single leg indefinitely.
How does placement and spillover work?
Every distributor has exactly as many frontline positions as your width allows. When those positions are full, additional members spill over automatically to the next open position in breadth-first order — top-to-bottom, left-to-right — beneath the distributor's downline, according to the placement rule configured for your plan. This is the core predictability advantage of a matrix: placement is rule-driven, not ad-hoc.
Two relationships matter and are stored separately:
- Relationship 1 · referral Sponsor Who referred the distributor — used for commission attribution where applicable.
- Relationship 2 · position Placement position Where the distributor sits in the matrix grid — which parent and which position under that parent, per your width, depth and spillover rule.
| Matrix setting | What happens | When teams use it |
|---|---|---|
| Width (e.g., 3-wide, 5-wide) | Caps the number of frontline positions each distributor may hold. Extra signups spill over. | Teams that want capped width and forecastable frontline payouts. |
| Depth (e.g., 3-deep, 5-deep, 7-deep) | Caps how many levels beneath each distributor the matrix pays. Levels beyond depth are not paid in the matrix calculation. | Products with steady subscription or repeat-order volume per level. |
| Breadth-first spillover (top-to-bottom, left-to-right) | System fills the next open position across the matrix before going deeper. | Default for most matrix plans — keeps fills balanced and visible. |
| Next-open-position spillover | New member lands in the earliest open position under the sponsor's downline. | Teams that want strict sponsor-linked spillover lineage. |
| Compression (optional) | Inactive or empty positions are skipped so commission rolls to the next qualified distributor in that branch. | Teams that want empty positions not to block level payouts. |
Width, depth, spillover order and compression are all configurable. Custom spillover or compression logic beyond these is scoped separately. Your matrix rule is set during demo configuration and re-tested before launch.
How are matrix commissions calculated?
Commissions are calculated level by level within the configured matrix — each level from 1 to your depth has a rate you define, applied to the volume or count in that level. Compression, capping and the payout cycle then determine what is paid and how empty or inactive positions are handled.
The illustration below uses sample values only to show the logic. It is not an earnings projection; your actual level rates, capping, compression and cycle come from your plan document and are tested on the demo.
| Input | Sample value |
|---|---|
| Matrix configured | 3-wide × 5-deep |
| Level-1 rate configured | 5% of level volume |
| Level-2 rate configured | 4% of level volume |
| Level-3 rate configured | 3% of level volume |
| Levels 4–5 rate configured | 2% of level volume |
| Compression | Enabled — skips inactive positions in the branch |
| Capping (per distributor, per cycle) | As per your plan, e.g. 5,000 |
| Step | Logic | Result |
|---|---|---|
| 1. Identify paid levels | Levels 1–5 within the 3×5 matrix | Only these levels are eligible |
| 2. Count / sum volume per level | Sum qualified volume at each level (with compression applied) | Level-wise totals for the cycle |
| 3. Apply level rates | 5% on L1 + 4% on L2 + 3% on L3 + 2% on L4–L5 | Gross commission per level |
| 4. Apply compression | Empty/inactive positions skipped; next qualified distributor in branch receives the level | Adjusted level totals — no gap blocks payment |
| 5. Apply capping & cycle | Total compared to per-distributor cap (e.g. 5,000); cycle posts per your payout rule | Capped amount payable this cycle; excess handled per your plan |
With compression disabled, empty positions in a level simply have no volume and no commission is generated for those slots. With compression enabled, the same branch's next qualified distributor moves into the paying position — the choice is set during configuration and visible in the genealogy and payout history reports.
What matrix plan rules can MLM Bazaar configure?
Every parameter below is set to match your compensation plan document. Nothing is fixed to a single default:
- Matrix width: 2-wide, 3-wide, 5-wide, or another width you specify.
- Matrix depth: 3-deep, 5-deep, 7-deep, or another depth you specify.
- Spillover order: breadth-first top-to-bottom left-to-right, or next-open-position per your rule.
- Level commissions: fixed amount or percentage per level, as your plan specifies.
- Payout cycle: daily, weekly, monthly, or another cycle you define.
- Capping: maximum payout per distributor, per cycle.
- Compression: disabled, or enabled with your ranking rule for skipping inactive positions.
- Placement rule: sponsor-linked or system breadth-first placement — or a rule you define.
- Volume and commission labels: the terminology your business uses (commonly BV, SV, or PV) is configured to match, not fixed to one convention.
- Bonus layers in scope: standard matrix level commissions per the table above; additional bonus layers outside the matrix calculation are quoted separately if needed.
How is the matrix plan tested before it goes live?
There is no separate sandbox that diverges from what you ship. Your plan is configured on the working demo and what you test is what goes live. Typical steps:
- You share your compensation plan document, including width, depth, spillover rule, level-commission structure, compression and capping, and payout cycle.
- We map the rules and confirm what is standard scope vs custom scope and integrated scope (payment gateway, SMS, WhatsApp, etc.).
- The matrix structure is configured on the working demo.
- Sample distributors and placements are added — frontline, spillover fills, and depth-limit cases.
- Level commissions, capping, compression and payout-cycle behaviour are run and checked against your plan doc.
- Reports are checked: spillover/matrix view, genealogy/network view, payout history, and capped/compressed volume.
- Corrections are made and re-tested with you.
- The approved configuration is prepared for production launch. Typical test-to-production is 3-7 days once scope, assets, and approvals are ready, not a guaranteed promise for every project.
What reports and payout visibility are available?
- Spillover and matrix-position report (filled vs open positions per level)
- Genealogy / network view (width, depth, spillover lineage)
- Payout history report, traceable back to the level, compression and volume that produced it
- Capped or compressed volume report
Admins see full network visibility. Distributors see reporting scoped to their own downline. That scoping is also where support matters: standard support during office hours, 24×7 for emergencies.
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What is included in the Rs 19,999 starting scope?
The table below reflects two confirmations: (a) Rs 19,999 = setup plus first year, (b) GST invoicing/receipts and gateway/SMS/WhatsApp are extra scoped. The exact wording must still match the service agreement.
| Included in Rs 19,999 (setup + Year 1) | Scoped and quoted separately |
|---|---|
| Standard matrix structure at your configured width and depth (e.g., 3×5, 5×5, 3×7) | Non-standard matrix mechanics: custom board-split, custom compression logic, or other non-standard width/depth behaviour |
| Breadth-first and next-open-position spillover per your chosen rule | Custom spillover or placement logic beyond the standard options above |
| Configurable level commissions, capping, payout cycle, and compression (enabled/disabled per your rule) | Additional bonus layers outside the standard matrix level calculation |
| Your volume/commission labels (BV / SV / PV as you use them) | GST invoicing/receipt customisation; payment gateway, SMS, and WhatsApp integrations; CRM/ERP or other third-party integrations |
| Working demo, configuration, and testing before launch | Data migration and special data work |
| Hosting, domain, and support for the first year (standard hours, 24×7 for emergencies) | From Year 2: hosting, domain, and support renew annually (per service agreement); taxes and third-party charges |
What does MLM Bazaar need from you?
Before configuration starts, we ask for your actual compensation plan document — width, depth, spillover rule, level-commission structure, compression and capping rules, and payout cycle — so our team has full end-to-end knowledge of what you are building before anything is configured. If you are still finalising the plan itself, we walk through the standard matrix structure with you first and configure from there. The demo is where mismatches surface, not after launch.
Business-model and legal disclaimer: MLM Bazaar provides software and implementation services. The customer is responsible for obtaining professional legal, tax, consumer-protection, payment, and sector-specific advice and for ensuring that its business model, products, compensation plan, advertising, and operations comply with applicable law. MLM Bazaar does not evaluate or approve whether a specific compensation plan design complies with Indian direct-selling regulation. See the compliance guide for the current regulatory framework.
Frequently asked Questions
What is a matrix MLM plan?
A matrix MLM plan is a compensation structure with a fixed width and fixed depth. For example, in a 3-wide by 5-deep matrix, each distributor can have at most three frontline positions and the matrix pays down to five levels beneath them. New signups fill the next open position in breadth-first order through spillover.
How is commission calculated in a matrix plan?
Commission is calculated level by level within the configured matrix. Each level has a rate you define, applied to the volume in that level. Capping, compression, and the payout cycle then determine what is paid for the cycle. The exact level rates and cycle are set to match your compensation plan document.
How does spillover work in a matrix plan?
When a distributor's frontline width is full, additional signups spill over to the next open position beneath their downline, filling top-to-bottom and left-to-right according to the placement rule configured for the plan. This keeps the matrix structure predictable and pay positions forecastable.
What width and depth options can MLM Bazaar configure?
Width and depth are configured to your plan — common examples are 2×3, 3×5, 3×7 or 5×5 — and the standard Rs 19,999 scope covers your chosen width and depth. Non-standard matrix mechanics or bonus logic beyond the standard width/depth and level setup are scoped separately.
What is compression in a matrix plan?
Compression is an optional rule where empty or inactive positions in a level are skipped so commissions roll to the next qualified distributor in that branch. Whether compression applies and how it ranks is configured to your plan; if you do not use it, the level pays only on filled positions.
Is a matrix MLM plan legal in India?
MLM Bazaar builds and configures the software; we do not certify that a specific business model or compensation plan complies with Indian law. The Consumer Protection (Direct Selling) Rules, 2021, prohibit pyramid and money-circulation schemes. See our compliance guide, and confirm your specific plan with a qualified legal professional.
What's included in the Rs 19,999 starting scope, and what renews after Year 1?
Rs 19,999 covers the standard matrix setup — your configured width and depth, breadth-first spillover, level commissions, capping, compression where configured, payout cycle, your volume labels, working demo and testing — plus hosting, domain, and support for the first year. From Year 2, hosting, domain, and support renew annually per the service agreement. Non-standard matrix logic, GST invoicing customisation, payment gateway, SMS and WhatsApp integrations, and additional bonus layers are scoped separately.
How do I see the matrix plan working before committing?
We configure your matrix plan on a working demo you and your team test directly — placing sample distributors, checking spillover positions, running level and payout cycles, and reviewing reports — before anything moves to production. What you test is what goes live.
What does MLM Bazaar need from us to configure the matrix plan?
Your actual compensation plan document, including matrix width and depth, spillover rule, level-commission structure, compression and capping rules, and payout cycle. If you are still finalising the plan, we walk through the standard matrix structure with you first and configure from there.
See your matrix plan running on a real demo
Bring your compensation plan document. We configure a working demo around it, and you and your team test it before it goes live.
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