MLM IS IT FOR YOU

Looked for a home based business recently? If you have, then you have seen the ads that promised Guru Bob will “fill your matrix” for you, out of his own efforts and spillover and with no work on your part. All you have to do is enroll now, before it’s too late. Sounds great, doesn’t it? You just sign up, pay your hard earned money, and ride Guru Bob’s magic carpet off to Successville. Houston, we have a problem. With nearly all matrix-type pay plans, this helps them, and hurts you.

A matrix pay plan is one that limits how many first line referrals you can have, thereby limiting how your organization grows. (Some pay plans allow unlimited width, which is even worse. Your sponsor has no incentive to help you at all by putting people in your organization with spillover. There is not a single case where they would be better off doing that than they would be by putting everyone on their own front line.) With a matrix, you might see a plan that has something like a 3 by 6 matrix. That means in the basic part of the pay plan, you would be paid commission on up to three members on your first level and six deep, for a total of 1092 in a perfectly filled matrix.

So, how is it possible that spillover can negatively affect you? Let’s say Guru Bob fills your first two rows for you before you find a person of your own to enroll. In fact, he is so good he fills you up with the first three rows. That means your friend Mary who signs up because she feel sorry for you, would be placed on your fourth level down. If you are conscientious and want to help her, you would be working with your first personal referral down on your fifth level, and only getting a few cents for everyone above that. And if Guru Bob helps them like he helped you, you might be adding people to your tenth level and beyond.

You, then, end up with a massive looking organization that is paying you less than your monthly dues. Thirty or sixty or ninety days later, you drop out and try to find out what’s hot now. To your surprise, you find that Guru Bob is now promoting another program. You think, “maybe if I get in earlier, I will get in on the big money.” Wishful, but not accurate, thinking. You can sign up as close to Guru Bob as you want to, and you aren’t going to make the money he’s making, or anything close to it, until you have your own personal sign ups. If it worked for the long term, Guru Bob wouldn’t have a list of ten programs where he has been the top guy (or girl.) He gets in, runs it through his list, makes money for a couple of months, and goes off to another.

Building a fully filled matrix requires some sacrifice by each person in the group, including Bob. If everyone agreed to have a maximum of three personals, all on their front line, everybody would make way more money (except Bob, who might make $25k a month instead of $50k). Additionally, if no one cared who those enrollments came from, everyone’s matrix would fill completely, and everyone would get to the top of the pay plan, where the larger money is. Now, the only obstacle is finding a group of people and a company that will do that. If there were, maybe they could call it something like Unselfish Wealth.

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Tags: MLM