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.
You'll generally see two different types of pay structure within these companies. One offers a direct sales structure and another provides you with a matrix style format. What does each one do? Which one is better suited to you? []
The most common system is the direct sales method. By signing up to the company you wish to work with, you are then able to promote their products via a unique affiliate link and earn a sizable commission for your efforts. Usually the compensation is quite large in these plans, offering around 90% of the money generated.
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 main issue with a matrix format is that the lower pay level tends to put people off a little bit as it takes a while to generate any substantial income. Patience is not a virtue for most folks in the online world. It also tends to be mis-marketed by many people, who claim that if you join their team they will do all of the work for you, which is of course nonsense.
There is no doubt that both styles have their own sets of positive and negative aspects to deal with. There is no perfect structure, so it would be wise to weigh up both options and take the one which you are personally more attracted to. Opportunities like Empower Network offer a direct sales approach whereas companies like Global Domains tend to stand by a matrix layout. Either way, there are many companies out there for you to choose from.
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.
You'll generally see two different types of pay structure within these companies. One offers a direct sales structure and another provides you with a matrix style format. What does each one do? Which one is better suited to you? []
The most common system is the direct sales method. By signing up to the company you wish to work with, you are then able to promote their products via a unique affiliate link and earn a sizable commission for your efforts. Usually the compensation is quite large in these plans, offering around 90% of the money generated.
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 main issue with a matrix format is that the lower pay level tends to put people off a little bit as it takes a while to generate any substantial income. Patience is not a virtue for most folks in the online world. It also tends to be mis-marketed by many people, who claim that if you join their team they will do all of the work for you, which is of course nonsense.
There is no doubt that both styles have their own sets of positive and negative aspects to deal with. There is no perfect structure, so it would be wise to weigh up both options and take the one which you are personally more attracted to. Opportunities like Empower Network offer a direct sales approach whereas companies like Global Domains tend to stand by a matrix layout. Either way, there are many companies out there for you to choose from.
About the Author:
Further Details: Russ Howe is now a world leading Empower Network affiliate. You can watch his comprehensive 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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