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What's The Difference Between Affiliate Programs Offering Direct Sales Or A Matrix?

by Howe Russell

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.

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? []

First, let's look at how the direct sales package generally works. This involves the affiliate promoting products and services of their chosen affiliate business via a unique link. Each time a customer buys something via that link, the affiliate earns a commission. In most cases this type of plan offers the individual a fairly high rate of pay. Something in the region of 90% to 100% is common.

That means if you refer a member to a business product which costs $10, you would earn roughly $9 or $10 for that sale. Direct sales has the advantage of offering very high commission levels which make it easier to hit the ground running and generate a three-to-four figure monthly income in a relatively short period of time depending how serious the individual is.

Nothing is perfect, however, and direct sales plans have one major negative factor. Affiliates only generate commissions based upon their own efforts, meaning they do not increase their income for helping those who they sign up to the business. This tends to lead to people becoming poor sponsors who do not want to share their knowledge, even with their own team who joined the business through them, because there isn't a financial gain and it would merely increase their own competition.

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.

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.

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.



More Info: Russ Howe is now a world leading <a href="http://www.empowermoney.com">Empower Network</a> affiliate. You can obtain his thorough 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.

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New Unique Article!

Title: What's The Difference Between Affiliate Programs Offering Direct Sales Or A Matrix?
Author: Howe Russell
Email: howe.russ@gmail.com
Keywords: internet business
Word Count: 692
Category: Marketing
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