One of the main problems with learning how to make money online is the sheer volume of misinformation surrounding every new opportunity. From Empower Network to Avon, every company claims to be the one you are looking for as an affiliate business. Today we will help you to decide one of the most important aspects of becoming your own boss.
Today we will be looking at the major differences between affiliate programs offering a direct sales package and those offering a matrix based plan.
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? []
First, let's look at how the direct sales package generally works. This involves the affiliate promoting products and services of their chosen affiliate business via a unique link. Each time a customer buys something via that link, the affiliate earns a commission. In most cases this type of plan offers the individual a fairly high rate of pay. Something in the region of 90% to 100% is common.
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.
However, there is one side of a direct sales structure which is not advantageous. Usually they pay you a higher rate per sale because you only earn from your efforts. You won't earn for helping your referrals to earn. This leans to a lot of poor sponsors being attracted to this type of program because they don't need to help anybody else to succeed for themselves.
A matrix format offers a slightly different take on things. First of all, there is a substantially lower pay grade. While that might dim your enthusiasm slightly, this factor may be offset for most people by the advantages which we will show you in a moment. The lower pay structure usually results in a 10% or 20% commission being paid. So if a customer became a member or bought a product from you which costs $10 you would earn a $1 or $2 commission.
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.
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.
Today we will be looking at the major differences between affiliate programs offering a direct sales package and those offering a matrix based plan.
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? []
First, let's look at how the direct sales package generally works. This involves the affiliate promoting products and services of their chosen affiliate business via a unique link. Each time a customer buys something via that link, the affiliate earns a commission. In most cases this type of plan offers the individual a fairly high rate of pay. Something in the region of 90% to 100% is common.
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.
However, there is one side of a direct sales structure which is not advantageous. Usually they pay you a higher rate per sale because you only earn from your efforts. You won't earn for helping your referrals to earn. This leans to a lot of poor sponsors being attracted to this type of program because they don't need to help anybody else to succeed for themselves.
A matrix format offers a slightly different take on things. First of all, there is a substantially lower pay grade. While that might dim your enthusiasm slightly, this factor may be offset for most people by the advantages which we will show you in a moment. The lower pay structure usually results in a 10% or 20% commission being paid. So if a customer became a member or bought a product from you which costs $10 you would earn a $1 or $2 commission.
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.
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:
Further Details: Russ Howe is now a globally established Empower Network sponsor. You can read his thorough and direct empower network review in today's interview, which covers the aspects of the home based business industry which cause most affiliates to fail.
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