Matrix distributor compensation plans limit placement, allowing you to sponsor only a certain number of people on your front line. Each level has the same limit as first level placement, thus forcing your organization to grow to a specified structure. Distributors are also restricted from sponsoring outside the matrix, and there is a limit to depth.
Once the level is filled, the next distributor will be automatically placed on the next available level. Commissions are derived from a fixed percentage paid on sales occurring on each level. The percentage can also very, depending on the level. It is the total of these percentages that sets the maximum payout.
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