If you are trying to build a secondary income from home, there's a good chance you have thought about trying to make money online with affiliate businesses such as Avon and Empower Network. With more and more people jumping into the home business industry every day, it would make sense to do a little bit of research on your options before going any further.
Which type of compensation plan is the most profitable - a matrix layout or a direct sales package?
The main attraction to affiliate marketing is the quickness of the whole process. Rather than presenting a business plan, getting a loan and then trying to find a property to use as your HQ you simply sign up to an already established brand and promote their products. This simplicity is it's main attraction.
While you can earn an income with absolutely any company providing you work hard enough, it's a great first move to choose a company which has a compensation plan that suits your needs. So, are you more suited to a matrix structure or would you prefer a direct sales opportunity? Let's find out... []
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%.
Let's put this into context so that you can see it in monetary terms. If a company agreed to pay you a 90% commission rate and you referred a customer who spent $10 on a product, you would then earn a $9 commission from that particular sale. This makes it easy to generate a large income in a short space of time.
They do have one drawback, though. Usually you only earn an income for your own efforts. If you refer any members to your business you will not increase your own earnings by helping them to succeed. This not only potentially limits your income but also leads to a lot of problems where sponsors don't help their own reps learn how to build a solid business because there is no financial gain in it for themselves.
Matrix plans also have drawbacks and advantages so it's important to weigh up both options before you jump into anything that could turn into a long-term income. A matrix compensation plan provides much lower rewards per sale, usually in the 10% region, meaning a $10 sale would increase your income by $1.
The major benefit of a matrix system is that you earn every time a referral makes a sale, too. So while your individual reward is smaller, this combines with the sales you earn every time a team member builds their own business. When you combine both aspects this can lead to a very lucrative income. It also promotes the idea of helping your team regularly, because their success is your success.
Of course, promoting the idea of helping your team can also have a negative aspect. It tends to lead to in-fighting and competition between teams promoting the same affiliate program. It is not uncommon to see teams trying to outsell each other by making bigger and bolder claims, until they reach the stage where they are practically promising to do all of the work for new members if they choose them over other teams. This is impossible, of course, and tends to only attract freeloaders.
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.
Which type of compensation plan is the most profitable - a matrix layout or a direct sales package?
The main attraction to affiliate marketing is the quickness of the whole process. Rather than presenting a business plan, getting a loan and then trying to find a property to use as your HQ you simply sign up to an already established brand and promote their products. This simplicity is it's main attraction.
While you can earn an income with absolutely any company providing you work hard enough, it's a great first move to choose a company which has a compensation plan that suits your needs. So, are you more suited to a matrix structure or would you prefer a direct sales opportunity? Let's find out... [
Russ Howe built an incredible income with empower network this year. Here is his story.
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%.
Let's put this into context so that you can see it in monetary terms. If a company agreed to pay you a 90% commission rate and you referred a customer who spent $10 on a product, you would then earn a $9 commission from that particular sale. This makes it easy to generate a large income in a short space of time.
They do have one drawback, though. Usually you only earn an income for your own efforts. If you refer any members to your business you will not increase your own earnings by helping them to succeed. This not only potentially limits your income but also leads to a lot of problems where sponsors don't help their own reps learn how to build a solid business because there is no financial gain in it for themselves.
Matrix plans also have drawbacks and advantages so it's important to weigh up both options before you jump into anything that could turn into a long-term income. A matrix compensation plan provides much lower rewards per sale, usually in the 10% region, meaning a $10 sale would increase your income by $1.
The major benefit of a matrix system is that you earn every time a referral makes a sale, too. So while your individual reward is smaller, this combines with the sales you earn every time a team member builds their own business. When you combine both aspects this can lead to a very lucrative income. It also promotes the idea of helping your team regularly, because their success is your success.
Of course, promoting the idea of helping your team can also have a negative aspect. It tends to lead to in-fighting and competition between teams promoting the same affiliate program. It is not uncommon to see teams trying to outsell each other by making bigger and bolder claims, until they reach the stage where they are practically promising to do all of the work for new members if they choose them over other teams. This is impossible, of course, and tends to only attract freeloaders.
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:
Biography: World leading affiliate Russ Howe created a 5 figure income online with programs such as empower network. His free guide on how to make money online will help you to grow your business.
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