The crux of matrix plans & spillovers.

Putting on your business caps...
we all know that any traditional revenue-generating business achieves its regular business revenues from only a proportion of its full customer-base.

e.g. not all coca-cola drinkers consume coca-cola regularly.

Of course, generally speaking, there might be X number of loyal customers who might consume "ABC" brand daily but that's an ideal situation and besides the point -- lets talk big picture in reality!

Which leads us to networking... where it is the same as any traditional biz, company "DEF" can claim it has XXX,XXX numbers of distributors / consumers. It is always the case, that only a % of the distributor / consumer base are actively buying &/or promoting product on a regular basis.

In terms of matrix compensation plans, it does not matter how big your upline claims his team / organisation is -- & how it will spillover into your own downline "by default" which will generate "business for you" even if you did not refer anybody to the business / product.
Do you realise it is actually how many direct-linked uplines that are active in the business that will contribute to the actual spillover in your downline organisation.
Not forgetting, if YOU are contemplating registering a membership position and "sitting there" for spillovers without doing any work, imagine how many others are relishing that situation too? LOL.

The main post discussing matrix plans is here.

Take a pen & paper. Draw an imaginary line from you (dot #1), to your sponsor (dot #2), to his/her upline sponsor... all the way to the master distributor who sits at the top of the organisation.
i.e. the first guy in the business who the company put in charge of the entire network.
(You may throw in a couple dots in between each dot you drew earlier, if & only if every dot is a "capable recruiter" who brings consistent business throughout his career with the company. In reality we know most networkers cannot, or will not. Also in matrix compensations there are 3 or more legs in which to spillover additional new members -- which dilutes the situation exponentially.)

In real life, perhaps 30% of an average organisation is actually buying / promoting product. Lets be generous and say 50%!
That means you are left with only half (or less!) of the dots you drew earlier -- who will contribute in "building your downline" for you.

To cut the long story short, no matter how massive a company says its distributor/consumer database is (e.g. 300,000), it could very well be 10 dots or LESS (who contribute to spillover) linking you to the distributor who is above everyone in the organisation tree. This is just how business dynamics is in real life.

In comparison, modified-binary plans can truly let you "stop at 2" personally sponsored downlines, thereafter you benefit from FULL comp plan benefits while the business expands. Keyword being "can", because 90% of binaries / modified-binaries still come with many unseen conditions that require you to keep recruiting beyond 2. (Do your research and you might chance upon such a generous organisation -- hopefully this post can help you in that respect.)

Of course, the most taxing pay plans remain to be unilevel / stair-step, where your business building success almost entirely lie in your own hands. i.e. each & every sponsored downline in your organisation has to start from your effort. Meaning you have to bring a "frontline" of personal downlines, and from there they help you (& themselves) expand the organisation in the same way. No spillovers. In some old-school payplans like these, some uplines resort to "giving" downlines a few leads to personally sponsor (sort of like a spillover but only out of goodwill), BUT note that this opens up a can of worms policy-wise where the distributor is liable to be terminated.
Especially when networking is a human-to-human business, and a very primal human instinct is still involved -- jealousy! Rival teams or unhappy peers / crosslines may report such activities to your company's compliance department.

In conclusion, spillovers are great. But by making that fateful decision to be a part/full-time networker, you must be professional -- be responsible and do your minimum to drive a successful business for yourself.
The minimum? Sponsoring and recruiting, of course!

Once you are expending minimum effort, you will be growing an organisation no matter if its a matrix / modified-binary plan.

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Do WITHOUT the juice/vitamin/cosmetic/household "stuff".
Find a niche & the market will come to you!

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Chicago Sun-Times sister paper: Networking Works!

America is proving that Networking works in these gloomy economic times!
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(Post-Tribune is a sister company of the Chicago Sun-Times.)

Networking works for bright, brave
Published March 22, 2009
Original article is here.
By Carrie Napoleon

Post-Tribune correspondent
When the plumbing company Elizabeth L. works for reduced her hours last year, the Munster homemaker knew she'd need a part-time job to supplement her income.

Finding a job that fit around her regular job and her family obligations, however, was more than a notion.

That's when she found a little inspiration.

"I was sitting on my couch one day watching Lifetime, one of my favorite girly channels, and of course the Avon commercial came on. It really intrigued me," said Elizabeth, a wife and mother of two who helps care for her own mother.

"This sounds like something I can do," Elizabeth said, and "the next day I hopped on the Internet and found where to submit an application."

It's a story that's all-too-familiar to network marketing executives.

As increasing numbers of people lose their jobs or see their incomes reduced, the appeal of network marketing grows, executives say.

While precise numbers are not available, Doris Wood, chairman of the Multi-level Marketing International Association in San Diego, Calif., said her office has fielded an increased number of queries about network marketing since the economy soured.

"Anytime there's a downturn in the economy," she said, "network marketing is there."

The world's 4,000 or so multilevel marketing companies -- 1,000 or so in the United States -- sell everything from cosmetics and cookware to nutritional and financial products, Wood said, ringing up $100 billion a year in sales and providing career and financial opportunities for thousands of independent agents.

Cosmetic giants Avon and Mary Kay have amped up their television recruiting, executives say, hoping to draw from a larger pool of job seekers.

Avon started its recruitment campaign in April 2007, according to Lindsay Blaker, public relations manager for Avon Products Inc. in New York.

"We really wanted to show our earning opportunity. It definitely has been a positive for us," Blaker said of the campaign. The company, founded in 1886, saw a 4 percent increase in representatives in North America by the fourth quarter of 2008, she said.

Blaker said network marketing companies like Avon are attractive to people, especially now, because they offer flexibility and little start-up costs for people looking to find work or supplement their income.

Bruce MacLean, director of the graduate programs in management at Valparaiso University, said network marketing also can be a lucrative enterprise because consumers still like individual service and attention -- something that's tougher to find in the traditional retail market.

"People like personal selling. They like to have someone they can trust to talk to," MacLean said.

That's why it is important, MacLean said, for interested sellers to find a product they believe in and can feel comfortable promoting to other people.

Equally important is thoroughly researching the company to protect yourself against pyramid schemes or other shady enterprises, MacLean said.

And be wary of companies that promise big and immediate returns for a small investment of time and money, he said.

Remember the time-honored adage, experts warn: If it sounds too good to be true, it probably is.

Wood agreed, saying it takes time to build a client base and to recruit and train other representatives, which improves earning opportunities.

"Multilevel marketing is a job in the beginning until you have built it up," she said. But once you've laid a strong foundation, she said, "you can turn it into a career. You could make more money than you could at any ordinary job."

That is just what Elizabeth, the Munster homemaker, hopes to do some day. In her eight months with Avon, she already has earned President's Club status, selling more than $10,000 in product in 2008. She plans to grow her business and her network of representatives slowly.

Things have been going so well, Elizabeth said, she's convinced she can make a career of it and leave her job at the plumbing company behind.

"I told my boss, 'You better watch out, in five to 10 years, I'm retiring,'" she said.

While many of the 1,000 or so multilevel marketing companies in the U.S. are legitimate and profitable, experts say some are nothing but pyramid schemes.

- Multi-level Marketing International Association
- About the Sun-Times News Group
Sun-Times News Group (“STNG”) is dedicated to being the premier source of local news and information for the greater Chicago area. Its media properties include the Chicago Sun-Times and suntimes.com as well as newspapers and Web sites serving more than 200 communities across Chicago. STNG’s parent company is Sun-Times Media Group, Inc. (SUTM.PK)

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Do WITHOUT the juice/vitamin/cosmetic/household "stuff".
Find a niche & the market will come to you!

请联络... 听听华语讲解


>> Click Here Now <<

& Be First!