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

Before you make money online as an affiliate marketer for companies such as Visalus and Empower Network you should take a little time to see the different options which are in front of you as you begin your journey to one day becoming your own boss. Today’s post will help you get through one of the biggest steps.

Today we will be looking at the major differences between affiliate programs offering a direct sales package and those offering a matrix based plan.

One of the main attractions to becoming an affiliate marketer, as opposed to starting your own business, is that you are literally given something which is already up and running. With no ‘leg work’ to complete, you are ready to get started from day one.

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.

However, there is one side of a direct sales structure which is not advantageous. Usually they pay you a higher rate per sale because you only earn from your efforts. You won’t earn for helping your referrals to earn. This leans to a lot of poor sponsors being attracted to this type of program because they don’t need to help anybody else to succeed 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.

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 Writer: World leading mentor Russ Howe created a great income online with programs such as empower network. His free guide on how to make money online will get you on the right track.