|
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 |
