MLM Matrix Compensation Plans --Words of Caution

Author: Bob Alter

Article:
First off, I assume you understand what a mlm matrix compensation plan is.

My purpose of this article is to give you first hand knowledge and experiences using matrix plans. Although this might sound like I am hammering mlm matrix's to death and also that I don'tlike mlm matrix's, that is not the case. I use matrix's as a backdoor method to my mlm marketing efforts.

However, mlm matrix's are NOT my primary business.

MLM Matrix Compensation Plans

Words of Caution: #1Matrix compensation plans have not been around that long and they do not really have that good of track record. Very few companies have made it with a pure mlm matrix plan. Many of them have had to modify their matrix compensation plans in order to survive.

I read somewhere that only 9% of all mlm companies (and believe me there are thousands of companies out there) are using a mlm matrix compensation plan.

On the flip side (to be fair) a couple of mlm companies use a matrix plan and they have been around for 15 years. YES, they have made some major modifications to their compensation plans and that is the major reason they are still around. You simply cannot live on a matrix plan for long term success. Adding a uni-level plan or some other type of compensation on the backend of a matrix greatly increases survival rates.

Words of Caution: #2

Smaller matrix's especially those that have a 2 x or 3x firstlevel will attract lazy mlm distributors.

More In Depth Coverage: if you can earn income from all levels in your matrix without having to sponsor anyone--will attract lazy mlm distributors.

A MLM Matrix compensation plan will attract State Attorney Generals, postal regulators and other regulatory agencies because it will appear to look like a pyramid or even a lottery.To top that off a MLM matrix compensation plan that requires recruiting will create misunderstandings between all parties hence, negative publicity.

Negative publicity will kill a MLM faster than anything.

Words of Caution: #3

Matrix's usually limit the levels you can earn income from. "Hey Bob, all compensation plans limit the levels you can earn income from, so what's new"? Well, many things are different including how many mlm distributors can be on any of your levels. Uni-level plans have unlimited width.

More in Depth Coverage: Talk to successful mlm'ers and ask them were the majority of their income comes from. Levels 1-4 or anything below their 4th level.

MLM matrix compensation plans limit the levels you can earn income from and usually are structured like this 2x3 or 3x4.

Smart companies who use a matrix plan have added incentives to help the professional mlm'ers earn income from the lower levels. Some add a 100% matching bonus (more discussion on this later), others add a uni-level plan after certain levels have been reached, while other companies will allow for an expandable matrix. This simply means once you fill your matrix you are then allowed to start another matrix.

By starting another matrix you can then capture at least SOME ofthe downline income LOST IN A MATRIX that would have been paid in a uni-level plan.

100% Matching bonus 50% matching bonus

You will see this a lot in a matrix plan. That is the companies simple solution to helping professional mlm'ers capture income below their advertised pay lines. ie: 2x3 or 5x5

However, if you take a 3x3 matrix and fill it up you will have 3 on your first level, 9 on your second level and 27 on your third level. By offering you a match on anyone you personally sponsor, you can receive income from levels 4, 5 and 6 if that person you sponsor falls on your third level. Sounds good doesn't it?

Remember, there are another 26 members on your 3rd level and you will never receive any type of compensation if you train these people to fill their personal 3x3 matrix. Why?

Because their new members fall outside your matrix and you didn't sponsor them. This is the major drawback of matrix plans.Y es, even uni-level plans limit your income potential below certain levels, but they include options that allow you to earn income from levels deeper than their normal bottom payline. Often times, they will block you after someone in that particularleg reaches a certain level. Some even break off.

One positive to this spin is the fact that someone has to sponsor the new mlm distributor. Because you will receive a matching bonus, you do have a vested interest in their success. Basically, you will take a greater degree of interest in helping this person succeed. Without a matching bonus, this person would more than likely fall through the cracks.

Word of Caution: # 4

Let's get away from negative thinking and look at a positive way to build a matrix.

More In Depth Coverage:

What we teach our matrix members who join our group is this:

1. join only if you can afford the price of the product + monthly marketing costs.

2. join only if you are willing to learn our system within 2 weeks and begin to teach it the minute you sponsor your first new member.

3. join only if you are committed to sponsoring (4 new members if it is a 2x matrix or 6 new members if it is a 3x matrix)

4. join only if you are committed to sponsoring your new members within the next 4 months if it is a 2x matrix and the next 6 months if it is a 3x matrix.

5. don't worry about marketing we provide coops

6. don't worry about what to say, we have trained leaders who will help

7. don't worry about money, we are committed to helping you break even quickly and into profit soon.

8. Be ready to study this industry so you can become a leader ASAP.

Now, that is a long laundry list. And yes, we still have people that beat the system, however what we do have are new mlm distributors who join our team, knowing what is expected of them and what is expected of us.

Normally, our groups grow slow to begin with, once momentum kicks in we grow fast, we grow profitable and we grow stablei ncome checks that keep growing month after month.

Normal compensation checks in matrix's grow the first 4-6 months and then they plateau for another 2 months before they begin to crash in less than 3 months. This is very typical of matrix's unless you have some filters set in place, up front.

MLM Distributors are always happy to join a matrix, however they are not happy to do all the work. With the proper expectations of your group laid out you will build a happy, productive and duplicating downline.

Right?

If you are currently in a mlm company that uses a matrix, please feel free to contact us and tell us your success/failure with matrix plans. There are always exceptions to the rule and we want to hear your voice.

God Bless and have a fabulous week.

BobYour Source for MLMLeads Reviews

MLM Consultant, Bob has coached thousands of networker ssince the early 1980's along with 16 Years of Coaching HighSchool Baseball & Football. Bob has reached the top level in 3 different companies and served as a member of the board for 2 years with a large nutritional company. Today Bob continues to coach network marketers/mlm'ers and he lives on the Yakima River in Prosser, Wa. With his wife Sue, two kids, Robbie & Kirsten,and their dogs named Cougs, Champ, Cammie and CJ.

How To Recruit 100 Distributors A Day

Author: Jonathan Street

Article:
Facts & Myths of Multilevel Marketing How To Recruit 100
Distributors A Day, Every Day Of The Week!

I was exploring the internet jungle a few weeks ago when I
stumbled upon what appeared to be an open MLM forum, however it
had pretty much been taken over by distributors for one dominant
opportunity. Dare any member from a subordinate MLM species
wander into their domain and there would be a frenzy of activity
to see who could convince the newcomer that their MLM program
was superior -- and from the looks of their on-line
conversations, they were succeeding.

The lure wasn't the promise of quick and easy wealth, for there
was actually little mention of high incomes. Nor was it the
miraculous benefits of their amazing product line. Instead, they
were trading recruiting figures. Massive recruiting figures.

One had recruited eleven people his first day in the business.
Another claimed she built a downline of over 3,500 by her second
month. Yet another claimed the company as a whole had gained
over 180,000 distributors since January. And yes, one even
claimed he had "personally recruited 100 people in a single day!"

This would all be very impressive -- if I could pay my rent with
distributor applications.

It's fascinating how the marketing trends in this industry
evolve from year to year. In 1991 and '92 everyone bragged about
how much their top earners were making. In 1993 and '94 everyone
was hyping their company's total monthly sales or sales growth.
And around the middle of this time span I remember there was a
short lived phase where the age of a company seemed most
important. Today, everyone's talking about how many distributors
their company has. It seems we've now entered a phase in the
cycle where what is actually the least important factor is now
considered the most important!

To create a marketing advantage, the "in" thing now seems to be
how to redefine "distributor" so as to claim the highest
possible number of them. For example, the above MLM program,
along with several others now entering make-believe momentum,
all have a free sign up system via an 800-number (In fact, in
some of these programs you can even sign up distributors without
them knowing you did it.) So, retail customers now routinely
sign up as "distributors" to get the product at wholesale.

Several companies now allow their distributors to sign up their
spouse, or any family members, and some even allow you to sign
yourself up as many times as you wish! While others, like the
above mentioned company, technically forbid such practice, their
distributors are doing it anyway and without consequence. So
while they may only gain 200 actual distributors next month,
they may be able to claim an increase of over 1,000
distributorships.

The technique used above is to simply give out sequential ID
numbers to anyone who orders even a single product, one time,
and to all the positions occupied by each distributor. Then,
call each ID number a "distributor".

Another way to make sure that this number always increases is to
never purge your inactive distributors. Technically, a company
can't terminate a person for not ordering product (while MLM
companies, like any direct sales company, can require a sales
quota to earn commissions, they can't require a product purchase
just to maintain distributor status). Instead, most will place
non-ordering distributors in an "inactive" file and simply
remove them from the distributor hierarchy. Some, however, will
continue to count these people in their total distributor figure
since they are, technically, still distributors.

Most MLM companies have some sort of annual renewal process
where a small administration fee is charged, or at the very
least a reapplication process. This is to weed out the dead
wood. Of course, if you omit this process, as some are, and
inactive distributors are still technically considered in the
program, then essentially they are "distributors" for life! No
matter how many quit, the "total distributor" figure will always
be climbing. What's more, the company can now claim a "zero
percent attrition rate!"

And it would be true -- technically.

MLM programs that employ a binary compensation plan have a
unique advantage in this area that's exclusively their own. In a
binary, one person can potentially occupy numerous "income
centers." I know of at least two such companies they are
currently claiming a "total distributor" figure based on the
total number of income centers. Fortunately, most of the binary
plan contingent have not followed suit.

So here's the formula to build a "one-million distributor
company" within five years:

1. Allow anyone to sign up for free, over the phone.

2. Count product customers as distributors, even if they only
order once and you never hear from them again.

3. Allow them to sign up as many times as they wish, or at least
disallow it and look the other way.

4. Allow them to sign up any and all family members.

5. Never purge your company database of inactive distributors.

(Or, you can just not reveal your total distributor figure and
just let your distributors "estimate." That should at least
double the actual amount.)

Just imagine if Amway would adopt the previous criteria when
defining "distributor." They could easily claim to have
100-million of them by now! In fact, I recently saw an ad for a
popular MLM program with the headline "Over 250,000 people have
joined (blank) International!" Of course, the ad doesn't mention
that well over half of them are no longer distributors.

Semantics plays a very important role in the MLM industry today.
By changing the standard definition of various aspects,
companies today can create the illusion that they are in what
ever stage of growth they desire. Want to sound like a "ground
floor opportunity?" Just say you're in "pre-launch" -- even if
you're in your second year of business. Want to sound like a
mature, stable company? Count all the years you thought about
starting an MLM operation and then claim "ten years in
development" -- even if you launched yesterday. Want to sound
like you're entering a massive momentum stage? Count every
single person who contacts your company, for any reason, as a
distributor -- then heavily promote how many distributors are
joining each month.

Several years ago, this same logic was used by the second
baseman on my Little League team. After losing the final game of
the season by a goodly margin, and all but three of the previous
seventeen games, this curly-haired little seven year old
attempted to comfort me by exclaiming, "Ya' know, coach, not
counting the games we lost, we were UNDEFEATED!"

This also reminds me of the debate regarding wether the
legalization of drugs would effect the crime rate. Advocates of
this idea claim it would drop it dramatically. Of course it
would! If you make fewer things illegal, they'll be fewer laws
broken. Hey, why don't we just declare everything legal? Then we
would have virtually no crime!

So, let's get to the big question: How can you, personally,
recruit 100 distributors a day, every day of the week? Simple.
Get your company to employ the following recruiting system: You
walk up to someone on the street, tap them on the shoulder twice
with the index finger of your right hand, and say "I dub thee a
distributor." That's it!

Think about the possibilities. You could literally recruit a
thousand new distributors each day if you found a busy
intersection in a major city. And if you trained just a handful
of people in your downline to do the same, you could build an
organization over 10,000 within days! And, of course, your
company could easily claim to have over one-million distributors
within just a few short weeks.

Now, understand, no one will make one thin dime in commissions.
But remember, it's recruiting figures that count in 2005

Happy Banking

About the author:
Jonathan Streets weekly eZine "21st Century Entrepreneur" is one
of the webs most popular money making newsletters. Lively,
upbeat and packed full of the best ways to make money right now,
sign up for free yourself at: www.millionaire-enterprises.com

I Signed Up My First MLM Recruit.... Now What Do I Do?

Author: David Ledoux

Article:
I Signed Up My First MLM Recruit.... Now What Do I Do? by David
Ledoux

My goodness, you look famished! Are you on one of those crazy
diets or something? Come on in, let me microwave you some Pizza
Pops...let's get some calories in you. Careful, they're hot!

You sit there and nibble. Let me tell you about the time I
signed up my first guy. It was December 1994. I called my buddy
Peter and said, "Hey, what's your visa number?".

Pete was silent for a minute. "Who is this?" he said, only half
jokingly.

"It's me. You and I are getting involved again in multi-level.
We're going to get rich. I'm serious."

That was it. Pretty much. I left out the part of him growling,
grinding his teeth, grilling me on the comp plan, and the like.
But since I was in, he was in.

I did a little dance. I call it the "I Got One!" dance. It's a
little jig-like. You bounce on your left leg twice, then on your
right leg twice, then spin around and pretend to spike the
football in the end zone, all the while singing loudly, "I got
one, I got one!".

So I got my buddy Pete in. Now what?

Here's a little quiz. Pretend you're me. What do you do?

a) Run an ad halfway across the country.

b) buy some dead genealogy lead lists half way across the
country.

c) load 5000 emails into your Spaminator 3000.

d) help Peter make a list, help him call the list, and show
presentations to his list.

Believe it or not, I picked D. Pete and I showed the plan to his
buddy Eric. Eric got in. Eric and Peter showed the plan to his
buddy Fabio. Fabio got in. Peter, Eric and I showed the plan to
a lady named Christine. Christine got in. Eric and I showed the
plan to Mario. Mario threw us out of his house. Then he got in
later.

And so it went. Within a year Peter had 1000 people in his
downline and a solid, passive residual income. It's now a decade
later and Peter has over 25,000 people in his downline. It does
over $10,000 a day in production. Not bad, eh?

I just signed a new kid named Josh. Josh is 28, hates his job,
his wife hates her job, and they are expecting a baby in about
90 days. Let's take a quiz.

What should I do with Josh?

a) ignore him and hope he figures it out on his own.

b) go join a new mlm deal because mine is 14 years old.

c) load 50,000 emails into a Spaminator Mark II.

d) help Josh make a list, help him call the list, and show
presentations to his list.

I picked D again. Josh and I showed the plan to Darnell. He got
in. Josh and Darnell showed it to Duane. Duane is 6 foot 7. He
got in. Now I have a bodyguard....want to bet the leg has 1000
people in it by this time next year?

Oh yeah...I taught Josh the dance too.

How were those Pizza Pops? Stuffed with yumminess? I thought so.

I appreciate you!



About the author:
David Ledoux has been involved in the network marketing industry
for 15 years. He is an author, speaker and million dollar
earner. To discover more jealously-guarded secrets of making
$100,000.00 or more every year through MLM check out his new
book, The Ultimate MLM Blueprint for Massive Success. The book
and a FREE MLM Training ezine are available online at
http://mlmlessons.com/blueprint
http://mlmlessons.com/blue