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.
When choosing an affiliate business, would you be better suited to one which offered a direct sales package or a matrix structure?
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.
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.
The second option is a matrix layout. The first thing you will notice about this type of compensation plan is that it offers a substantially smaller payout per sale. Instead of a 90% commission, it's more likely to be around the 10% mark. This means if somebody bought a $10 product via your link you would earn $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.
When choosing an affiliate business, would you be better suited to one which offered a direct sales package or a matrix structure?
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.
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.
The second option is a matrix layout. The first thing you will notice about this type of compensation plan is that it offers a substantially smaller payout per sale. Instead of a 90% commission, it's more likely to be around the 10% mark. This means if somebody bought a $10 product via your link you would earn $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:
Author: Russ Howe is now a world leading Empower Network sponsor. You can obtain his thorough and honest empower network review in today's video clip, which covers the aspects of the home based business industry which cause most affiliates to fail.
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