What's The Difference Between Affiliate Programs Offering Direct Sales Or A Matrix?
If you are trying to build a secondary income from home, there's a good chance you have thought about trying to make money online with affiliate businesses such as Avon and Empower Network. With more and more people jumping into the home business industry every day, it would make sense to do a little bit of research on your options before going any further.
Which type of compensation plan is the most profitable - a matrix layout or a direct sales package?
As an affiliate you receive your own ready made home business and you stand to earn a commission each time you sign up a new member or make a sale on a product. This is a growing area of interest for people who are looking to become their own boss in their spare time and perhaps lack the hours it would take to start something from scratch, as this allows them to join an already established company.
When looking at different companies you will notice they tend to offer either a direct sales approach or a matrix layout. Which one is best? []
Let's start with the direct sales approach. This type of structure encourages the member to promote products and services on offer from the company they work with and in return that member earns commission levels which are generally above 90%, sometimes even 100%.
With a 90% payout you would earn $9 commission on a $10 sale, making a direct sales option very profitable for those looking to generate a decent income in a short space of time. That is, of course, if the individual is prepared to put in the hard work to succeed.
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.
Matrix plans also have drawbacks and advantages so it's important to weigh up both options before you jump into anything that could turn into a long-term income. A matrix compensation plan provides much lower rewards per sale, usually in the 10% region, meaning a $10 sale would increase your income by $1.
The reason it's lower is that they have more than just you to pay with that commission. These structures usually go five levels deep, meaning you do not just earn a commission each time you refer a member to your business, you also earn a commission each time any of your members do the same thing. Suddenly that lower commission level doesn't seem so bad after all. This structure encourages sponsors to help their team develop their own skills because, ultimately, if those affiliates succeed in their business it would also financially benefit the affiliate who referred them.
The biggest negative of a matrix format is that income takes far longer to grow. Also, these systems tend to be targeted by those looking to take advantage of naive newcomers to the home business word. You'll often see stories of automatic systems which claim to build your business for you. Nine times out of ten, they work within matrix style systems.
Both type of plans have their benefits and drawbacks. Before you jump into any opportunities you should take some time to decide whether you believe you would be able to make money online via a direct sales package such as the one on display in Empower Network or you would feel more at home with a matrix style setup such as Global Domains International. Now that you know how both work, making that decision will be far easier for you.
Which type of compensation plan is the most profitable - a matrix layout or a direct sales package?
As an affiliate you receive your own ready made home business and you stand to earn a commission each time you sign up a new member or make a sale on a product. This is a growing area of interest for people who are looking to become their own boss in their spare time and perhaps lack the hours it would take to start something from scratch, as this allows them to join an already established company.
When looking at different companies you will notice they tend to offer either a direct sales approach or a matrix layout. Which one is best? [
See how Russ Howe became established in empower network here.
Let's start with the direct sales approach. This type of structure encourages the member to promote products and services on offer from the company they work with and in return that member earns commission levels which are generally above 90%, sometimes even 100%.
With a 90% payout you would earn $9 commission on a $10 sale, making a direct sales option very profitable for those looking to generate a decent income in a short space of time. That is, of course, if the individual is prepared to put in the hard work to succeed.
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.
Matrix plans also have drawbacks and advantages so it's important to weigh up both options before you jump into anything that could turn into a long-term income. A matrix compensation plan provides much lower rewards per sale, usually in the 10% region, meaning a $10 sale would increase your income by $1.
The reason it's lower is that they have more than just you to pay with that commission. These structures usually go five levels deep, meaning you do not just earn a commission each time you refer a member to your business, you also earn a commission each time any of your members do the same thing. Suddenly that lower commission level doesn't seem so bad after all. This structure encourages sponsors to help their team develop their own skills because, ultimately, if those affiliates succeed in their business it would also financially benefit the affiliate who referred them.
The biggest negative of a matrix format is that income takes far longer to grow. Also, these systems tend to be targeted by those looking to take advantage of naive newcomers to the home business word. You'll often see stories of automatic systems which claim to build your business for you. Nine times out of ten, they work within matrix style systems.
Both type of plans have their benefits and drawbacks. Before you jump into any opportunities you should take some time to decide whether you believe you would be able to make money online via a direct sales package such as the one on display in Empower Network or you would feel more at home with a matrix style setup such as Global Domains International. Now that you know how both work, making that decision will be far easier for you.
About the Author:
More Info: Russ Howe is now a world leading Empower Network affiliate. You can watch his comprehensive and honest empower network review in today's video clip, which covers the aspects of the home based business industry which prevent most affiliates from succeeding.
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