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.
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.
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.
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.
When you see the reason it's lower, however, things begin to pick up quickly. In a matrix format you don't just earn from your efforts, you earn from your referrals' efforts as well. So although the individual commission is lower than a direct sales plan, you stand to earn that 10% or 20% commission every time you or anybody in your team makes a sale. Potentially this is very lucrative, providing you are able to find other individuals who are serious.
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.
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.
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.
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.
When you see the reason it's lower, however, things begin to pick up quickly. In a matrix format you don't just earn from your efforts, you earn from your referrals' efforts as well. So although the individual commission is lower than a direct sales plan, you stand to earn that 10% or 20% commission every time you or anybody in your team makes a sale. Potentially this is very lucrative, providing you are able to find other individuals who are serious.
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 read his thorough and honest empower network review in today's interview, which covers the aspects of the home based business industry which prevent most affiliates from succeeding.
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