Thursday, April 9, 2009

Tiny MLM Checks

I had an epiphany looking back to some of the programs I was in. Programs that pay you $1 per referral and were $6-$15 per month to have an active status. I realized that these programs aren't as effective as they are promoted to be. They highlight the fact that with a filled matrix you can earn $10,000 or $35,000+ per month. There are these 5X6 or 3X8 Forced Matrices (or other similar in nature). They also highlight and stress teamwork in these programs. Don't get me wrong, I'm all about teamwork, but I feel that it is best to have an involved team in a program that also has a good compensation plan. You can help your team members in these forced matrix programs but you wouldn't be using your time effectively.

I suppose forced matrix programs like those above are appealing because of a very low startup cost. Plus, some think that because of spillover they won't have to put in any work, but they come to find that this is not the case. With each level in the matrix, it is harder to receive spillover.

I have yet to see someone involved in a forced matrix earning $15,000 or for that matter $10,000+. Even the top guys I see in those programs aren't making near the full potential of the matrix. And who knows, maybe the program will shut down for one reason or another before members have a chance to build up their income level to 5 figures in such a long period of time that is required.

Another reason is that income maybe be erratic with these forced matrices. A fair number of people see the low investment and the chance of great spillover and decide to join even though they don't know how to market. Then they come to find that they aren't receiving much spillover and decide to cancel their subscription to the program, cutting down your downline and thus the money in your pocket.

In the end, you still have to know how to market to be successful.

Funny thing is this kind of ties in with the Coffee House Letter I read a couple of months back but didn't think much of it. Recently, I received an email with the Coffee House Letter and I suddenly had my epiphany. Well...you learn by experience I suppose.

However, I will say that these forced matrix programs are potentially a good way to network with a lot of people and build a sizable list. But shh..don't tell anyone I told you that = D

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