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What is Board Plan ?

In Multi-Level marketing, Board plan is one of the most complicated plans in terms of structure as well as calculation. Board plan is structured in a way that strikes good balance between both business of company and individual growth of distributor. It is also known as revolving matrix plan because board plan has multiple matrixes in genealogy and distributors revolve between those matrixes.

How Board plan works ?

Board plan is basically n*n matrix plan depending on the type of board plan company uses. The most commonly used board plan is 2*2 matrix plan. Here distributors work in a team that is commonly termed as Board. Once distributor joins, he/she has to complete certain criteria set by company in order to start earning commissions. As the decided number of distributors in the primary board is completed then the board will split into two sub-boards where the top distributor will get some commission and will be promoted to the secondary board and the direct two distributors of primary board will form 2 different boards. The distributors will always be placed on 3rd level in board because the first two level will always be filled when board split up.

Let’s understand by taking an example of 2*2 matrix plan,

There will be total 7 distributors in 2*2 matrix plan having 2 distributors on level 2 and 4 distributors on level 3. After a distributor joined, he/she have to refer two other distributors in the network in order to start earning commissions. This condition differs from company to company. The placements of distributors in the board are done in the direction of left to right top to bottoms. Once the board is filled with 7 distributors in total, the board will spilt into two sub-boards and top distributor (Distributor 1) will get promoted to next board. Distributor 1 will be placed to his/her sponsor’s board in whichever position is open from left to right top to bottom’s manner. Same will happen with distributors 2 and 3 once their board is filled.

The plus point of board plan is whenever board split and distributors have to move to next board, and they will always follow their sponsor’s board wherever they may be. So there is no concept of upline and downline here. The board plan structured in a way that makes distributors helps each other in earning more money.

MLM Plans

Types of Income in Board Plan

  1. Direct Referral Bonus/ Direct Sponsor income

    Distributors will get this income as an incentive for introducing new distributors in the network. Company will give some percentage of sales done by distributors as direct sponsor income.

  2. Board completion income

    When distributors complete one board /matrix by referring enough people on each level decided by company, they will get board completion incomes for completing task.

  3. Rewards

    When distributor achieves milestones set by company within a specific time period (fixed or variable), they will get additional incentives as rewards. For example if distributor can complete 7 boards within a month from their enrolment they will get additional 3% on their board completion income.

Advantages of Board Plan

  1. A board plan best suitable for those companies who want to maximize the business profit and the efforts of distributors.

  2. Broad Plan empowers the entire network and people associated with it.

  3. Board plan strike good balance between growth of company and growth if distributor.

  4. Distributors will get help from their sponsors for building their network as it benefits them as well.

  5. Very effective plan if organization focuses on business.

  6. Distributors can earns commission by completing unlimited boards/matrix.

Disadvantages of Board Plan

  1. It is complex plan to present and duplicate compare to other MLM plans
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