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What is Auto Pool Plan ?

In Multi-Level marketing, structure of Auto pool plan is same as structure of matrix plan. Auto pool plan is possible in matrix structure only. It has a fixed numbers of width and depth in which placement of distributors will be done automatically from left to right and top to bottom.

How Auto Pool plan works ?

Auto Pool plan has fixed width and depth based on the structure company choose to follow which allows distributors to have fixed number of recruits in their downlines added by company itself. Many people call it non-working plan as well because the positioning of downlines gets automatically filled by the company, it allows distributors to earn various benefits in a completely automated way. The sequencing of the placement will be from left to right and top to bottom in the network as mentioned earlier.

Let’s take example of 3*7 auto pool plan, which is given in below table:

In this example, according to company’s plan first pool will have 7 levels shown in the table and joining will be from left to right and top to bottom. So after entering the pool distributor has to have 3279 members in his/her downline added by himself or by the company.

Level Number of Distributors Level Income
1 3 10%
2 9 8%
3 27 4%
4 81 2%
5 243 1%
6 729 1%
6 2187 1%
Total 3279

Types of incomes in Auto Pool Plan

  1. Direct Sponsor Income / Direct Referral Income

    Distributors can earn this income by referring new distributors in the network and they will get certain percentage of sales they’ve made as direct referral income. For example, company has decided to give 7% of the direct sales distributors have made.

  2. Level Income/Level Completion Income

    Distributors will earn level income when their levels get filled by the company from top to bottom and left to right. In our example, distributors will get 8% of sales done on their 2nd level, 4% of sales done on their 3rd level and so on.

  3. Auto Upgrade Income

    After completing one pool of matrix distributors will be upgraded to next pool automatically by deducting fixed amount of money set by company. For example, after completing one pool he/she will be upgraded to next pool and again he/she has to have 3279 members in the downline and so on. The amount that company deducts for upgrading will increase in 2nd pool onwards

  4. Rank Based Royalty

    This is additional benefit for distributors as they climb up the ranks, the higher rank they hold the more benefits they will have. In this income company will distribute some percentage of their turnover equally among qualified rank holders.

  5. Rewards

    Company distributes this incentive when they want distributors to complete specific task within certain period of time. This incentive will be provided as a reward for completing the task. It can either be fixed from the beginning or company will decide it from time to time.

MLM Plans

Advantages of Auto Pool Plan

  1. This plan can be implemented or integrated into the existing plan of your company.

Disadvantages of Auto Pool Plan

  1. It can be easily proved that auto pool plan is pyramid scheme as distributors are earning commission based on enrolment.

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