Friday, 2 August 2013

The Key Differences Between Forced Matrix Plans And Direct Sales Affiliate Programs

By Howe Russell


Before you make money online as an affiliate marketer for companies such as Visalus and Empower Network you should take a little time to see the different options which are in front of you as you begin your journey to one day becoming your own boss. Today's post will help you get through one of the biggest steps.

Today we will be looking at the major differences between affiliate programs offering a direct sales package and those offering a matrix based plan.

One of the main attractions to becoming an affiliate marketer, as opposed to starting your own business, is that you are literally given something which is already up and running. With no 'leg work' to complete, you are ready to get started from day one.

While you can earn an income with absolutely any company providing you work hard enough, it's a great first move to choose a company which has a compensation plan that suits your needs. So, are you more suited to a matrix structure or would you prefer a direct sales opportunity? Let's find out... []

The most common system is the direct sales method. By signing up to the company you wish to work with, you are then able to promote their products via a unique affiliate link and earn a sizable commission for your efforts. Usually the compensation is quite large in these plans, offering around 90% of the money generated.

That means if you refer a member to a business product which costs $10, you would earn roughly $9 or $10 for that sale. Direct sales has the advantage of offering very high commission levels which make it easier to hit the ground running and generate a three-to-four figure monthly income in a relatively short period of time depending how serious the individual is.

They do have one drawback, though. Usually you only earn an income for your own efforts. If you refer any members to your business you will not increase your own earnings by helping them to succeed. This not only potentially limits your income but also leads to a lot of problems where sponsors don't help their own reps learn how to build a solid business because there is no financial gain in it for themselves.

The second option is a matrix layout. The first thing you will notice about this type of compensation plan is that it offers a substantially smaller payout per sale. Instead of a 90% commission, it's more likely to be around the 10% mark. This means if somebody bought a $10 product via your link you would earn $1.

The major benefit of a matrix system is that you earn every time a referral makes a sale, too. So while your individual reward is smaller, this combines with the sales you earn every time a team member builds their own business. When you combine both aspects this can lead to a very lucrative income. It also promotes the idea of helping your team regularly, because their success is your success.

The main issue with a matrix format is that the lower pay level tends to put people off a little bit as it takes a while to generate any substantial income. Patience is not a virtue for most folks in the online world. It also tends to be mis-marketed by many people, who claim that if you join their team they will do all of the work for you, which is of course nonsense.

Sometimes, just taking the time to get to grips with the different options is enough to get a foot in the door of internet marketing. Now that you can see how to two most popular compensation plans operate and take into consideration their plus points as well as their negative aspects, you'll be able to see opportunities like Empower Network, Avon and Mary Kay on a much more level playing field. This will allow you to find a business you are personally happy with and build a future you can be proud of.




About the Author:



No comments:

Post a Comment