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.
Today we will be looking at the major differences between affiliate programs offering a direct sales package and those offering a matrix based plan.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
Further Details: Russ Howe is now a globally established Empower Network sponsor. 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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