You will often hear the word “spillover” thrown around in the network marketing industry. Many of the network marketing companies use a compensation plan based on a matrix pay plan. It might be a 4×5 Matrix, binary, a 3×9, or any other form of a matrix. A simple matrix might looks like this:
That would be a simple 3×3 Matrix. If it continued for a total of 9 levels (above is only 3 levels, 3 wide and 3 deep), it would be a 3×9 matrix. Anyways, I hope you get the idea of matrix model compensations. A spillover scenario would look something like this:
If you joined my organization, and I was “your upline” as shown above and I then proceeded to sponsor “A”, “B”, “C”, and “D” the way the matrix fills out “C” and “D” would be automatically placed under you and you would earn commissions off the products they purchased even though you never personally sponsored them. You would also earn commissions on any individuals that “C” and “D” sponsored and so forth. Basically spillover is the ability to have new customers/distributors placed below you by those above you in the matrix. Spillover is great and if you have a fast moving team it is very beneficial HOWEVER here are some things to keep in mind:
- Spillover is not guaranteed or automatic. Sometimes it just comes down to luck. Be very careful if you ever hear someone tell you that they promise you spillover. Although my team is fast moving I cannot promise you spillover. Its possible but I do not promise it.
- Do not join network marketing only with the hopes of spillover. You will never see success if you are only in the business to ride the coat tails of those actually promoting the business.
- If you have spillover placed below you, reach out to them and introduce yourself, however show common courtesy as they were sponsored by someone else