A structured arrangement utilized in network marketing, this system necessitates participants to recruit a fixed number of individuals into a specific width and depth configuration. Members are obligated to fill all positions within their designated structure, potentially leading to scenarios where individuals are placed in downlines even if not directly recruited by the immediate upline. This characteristic differentiates it from other compensation models.
This particular method offers potential benefits such as predictable team structures and the possibility of spillover, which can accelerate downline growth. Historically, such frameworks provided an easily understandable and manageable system for tracking sales and commissions in early multi-level marketing endeavors. Its structured nature facilitates focused team development efforts.
