<h2 class = 'uawtitle'>The Key Differences Between Forced Matrix Plans And Direct Sales Affiliate Programs</h2><br />
<div style='font-style:italic;' class='uawbyline'>by Howe Russell</div><br /><br />
<div class='uawarticle'>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.<br />
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Today we will be looking at the major differences between affiliate programs offering a direct sales package and those offering a matrix based plan.<br />
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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.<br />
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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? [<div style= 'padding-top:10px;width:320px;clear:both;margin:auto;text-align:center'><div style='margin:auto;padding:0;text-align:center;width:320px;'><object width="320" height="267.294117647"><param name="movie" value="http://www.youtube.com/v/juGJhf_RRJ8&hl=en"></param><param name="wmode" value="transparent"></param><embed src="http://www.youtube.com/v/juGJhf_RRJ8&hl=en" type="application/x-shockwave-flash" wmode="transparent" width="320" height="267.294117647"></embed></object></div><div style='margin:auto;padding:0;font-size:0.8em ;color:#008;text-align:left;width:320px;'>See how Russ Howe became established in <a href='http://www.youtube.com/watch?v=juGJhf_RRJ8&feature=related' target='_blank'>empower network</a> here.</div></div>]<br />
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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%.<br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
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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.<br />
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<div style='font-style:italic;' class='uawabout'><br />
About the Author:<br />
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<div class='uawlinks'>Author: Russ Howe is now a world leading <a href="http://www.empowermoney.com">Empower Network</a> affiliate. You can obtain his comprehensive and direct <a href="http://www.youtube.com/watch?v=juGJhf_RRJ8">empower network review</a> in today's video clip, which covers the aspects of the home based business industry which prevent most affiliates from succeeding.</div><br />
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