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.
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? []
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.
Let's put this into context so that you can see it in monetary terms. If a company agreed to pay you a 90% commission rate and you referred a customer who spent $10 on a product, you would then earn a $9 commission from that particular sale. This makes it easy to generate a large income in a short space of time.
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 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.
Sometimes, just taking the time to get to grips with the different options is enough to get a foot in the door of internet marketing. Now that you can see how to two most popular compensation plans operate and take into consideration their plus points as well as their negative aspects, you'll be able to see opportunities like Empower Network, Avon and Mary Kay on a much more level playing field. This will allow you to find a business you are personally happy with and build a future you can be proud of.
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.
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? [
See how Russ Howe became established in empower network here.
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.
Let's put this into context so that you can see it in monetary terms. If a company agreed to pay you a 90% commission rate and you referred a customer who spent $10 on a product, you would then earn a $9 commission from that particular sale. This makes it easy to generate a large income in a short space of time.
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 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.
Sometimes, just taking the time to get to grips with the different options is enough to get a foot in the door of internet marketing. Now that you can see how to two most popular compensation plans operate and take into consideration their plus points as well as their negative aspects, you'll be able to see opportunities like Empower Network, Avon and Mary Kay on a much more level playing field. This will allow you to find a business you are personally happy with and build a future you can be proud of.
About the Author:
Author: Russ Howe is now a globally established Empower Network sponsor. You can view his comprehensive and honest empower network review in today's video clip, which covers the aspects of the home based business industry which cause most affiliates to fail.
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