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UNDERSTANDING MLM MATRIX PLANS
by: Judy Thompson
Copyright 2005 Judy Thompson

If you are already involved in, or are contemplating a business using network marketing or multi-level marketing (MLM) as your marketing strategy, the better you understand it, the wiser and more successful you will be.

Network marketing companies select a certain type of compensation plan for different reasons. In this article I want to give an overview of the “matrix.”

What distinguishes the matrix compensation plan from other plans? It is a limited width plan. The width generally ranges from 2 to 5 people on the distributor’s first level. As more people enroll, they go under those first level people. If, for example, there were 3 first-level people, there could be 9 people on the second level, and 27 people on the third level, etc. Thus, an organization could conceivably grow into hundreds, or even thousands of people. The company promoting the products or services will determine how many levels deep they will pay. The company will pay you a certain percentage of the product purchases for each person in your downline. If you have a downline of only a few people, your bonus check will not be very big. If you grow into hundreds or thousands of people under you, then you will be paid a lot more.

A matrix plan allows for “spillover.” Spillover occurs when someone not enrolled by you is placed in your downline, and thus, has “spilled over.” This can be a neat, exciting thing to happen to a new distributor. It should never be counted on as the primary means to build a downline. In fact, probably the majority of people in a matix plan will never receive “spillover” from their upline. To be a beneficiary of “spillover” you have to be in the right place, under an upline member who is doing quite a bit of recruiting. However, it can be a very helpful thing to someone who is serious about building an organization.

The biggest drawback to a matrix plan and “spillover” is that often it attracts the lazy type of person who doesn’t want to work. So, you have a bunch of people joining just looking for their “spillover.”

While the matrix compensation plan is used by only about 9% of MLM companies, it generally is very attractive to people who can just work their MLM business on a part-time basis. The low monthly volume usually required helps it to be a workable plan for both part-timers and the non-sales types. Thus, in spite of some disadvantages to the matrix, people who are willing to do some work are likely to find that success is truly within their reach!


About the author:
Judy Thompson, a former teacher and business owner, is an experienced network marketer. She promotes a nutrition company that has an automated support system. For details, go to: http://automaticbuilder.com/333015895/?source=605


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 Network Marketing Do's and Don'ts
 by: Nial Robbins

Why did you become a network marketer? Most people immediately respond, “for the money!” However, this is not the real reason.

No one subjects them to the hard work of building a business just for little pieces of paper with the faces of dead presidents. The truth is you work in order to obtain what those little pieces of paper can bring you.

The first thing you need to do is to find the reason WHY you are a network marketer. Is it the freedom to choose whatever you want to do whenever you want to do it? Maybe you are looking for a different lifestyle. If there is one thing that is critical to your network marketing success, this is it. If you don’t have a reason, there is no motivation to succeed.

A network marketing business is a teaching and coaching business. If you don’t like interaction with other people, a network marketing business probably is not for you. There’s a concept that most network marketers just can’t seem to get a handle on. You do not sponsor “reps,” you sponsor “people!”

If you have to find a reason why you are building your business, then doesn’t it stand to reason that other people will have to do the same thing? If that’s the case, then why is it that network marketers continually focus on how much money your prospect can earn?

There’s no way you are going to convince “Joe Sixpack,” to get out of his Lazyboy recliner unless you find out what his motivation is. Most network marketers literally pound in the amount of money Joe can earn. They bombard him with message after message about how “Successful Sam” has just purchased his 10th Porsche, refurnished his 25,000 square foot cottage and promise Joe that he can do the same!

Just how realistic is this approach? Joe isn’t stupid. He works long, hard hours at his job in order to provide for his family and truly believes that the best thing he can hope for is saving enough money by summer to pay for a camping trip. Then here you come, promising Joe that he can have everything that Sam has and he can have it if he will just sign that piece of paper making you his sponsor!

You will probably sponsor a few people that way, but if you are in business for the long haul you need to change your approach and do it fast.

The proper approach is so simple, but in your rush to sponsor another “rep” instead of helping another person, all too often you talk yourself into and straight out of sponsoring the Joes of the world.

God gave you two ears and one mouth and he did it for a reason. We are supposed to “listen” twice as much as we “speak.”

Instead of pouncing on Joe with the latest and greatest network marketing program of all time, find out what Joe wants and needs. Ask him questions, lots of questions. In fact, in your first meeting with Joe, don’t even mention your business! Yes, that’s what I said. Don’t even bring it up. Remove yourself from the super duper network marketing persona and spend time making a new friend.

Follow these recommendations and you are set to grow your business exponentially.

NOTE: You have full permission to reprint this article within your website or newsletter as long as you leave the article fully intact and include the "About The Author" resource box. Thanks! :-


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