What's A 5x5 Forced Matrix?
RLR
A full 5X5 matrix is worth around $4,900 per month. To join a 5x5 matrix club, click here!
http://moneyfornothing.theshoppe.com/matrix.htm
J.A. Guy
RLR <lyn...@surfsouth.com> wrote in message
news:xWVr4.4106$Pa1.1...@news6.giganews.com...
Not a word about a product. Not a word about a market. Not a word about the
fact that matrix plans rely on the kind of "geometric growth [that] usually
only occurs on paper and not in the real world."
Here is what a major Industry publication says about Matrix plans:
"Well, unfortunately, what looks good "on paper" and "in theory" doesn't
always work in the real world.
Distributors for opportunities utilizing Matrix plans are notorious for
promising massive spill-over. Some even claim they can provide so much
spill-over they will build your entire downline for you. Unfortunately, they
never do. And those that build any kind of organization this way flood it
with people who just sit around waiting for their upline to do all the work.
And when all these hucksters who promoted their opportunity as being an
"easy, no work" program start getting taken to task by their downline for
not coming through with their promises, they will moan and gripe about how
their organizatin is taking it easy and not working.
According to a recent study, the average MLM distributor will sign up only
2.6 (our study came up with 2.1) distributors. So if your matrix is wider
than two, the odds are you will never see a drop of spill-over. Also, keep
in mind this figure is not a median, but only an average. In other words,
most new distributors never sign up anybody, and a very few sign up dozens,
or hundreds. So never count on spill-over to build your downline.
[Another problem with matrix plans is that ]... once you fill up the matrix,
everyone spills off the bottom level, out of your pay range. [Unless] the
program [allows] you to reenter the matrix again, or expand your front line.
[Finally] the vast majority of unscrupulous money games and bonafide pyramid
schemes all use a form of Matrix plan.... as long as they remain a haven for
hype artists and lazy dreamers, Matrix opportunities will continue to
struggle for... respect."
'NetWork Marketing Today/The MLM INSIDER Magazine', pages 110-112, January
1999, volume viii, issue vi
--
I do wish we could chat longer,
but I am having an old friend for dinner.
Dr. H. Lector
chr...@canadawired.com
A properly designed matrix will put requirements of qualification on
distributors for them to be paid on the deeper levels. Breakage occurs
below the bottom level. All MLM compensation plans must have
"breakage" if the company plans to stay in business. Pyramids do not.
You just can't compensate thousands of people for one sale and have a
compensation plan that works. Look for "breakage " in all MLM plans.
It's there. If it is not, you are being lied to.
Chris
J.A. Guy
<chr...@canadawired.com> wrote in message
news:38b38d34...@news.canadawired.com...
>
>
> A properly designed matrix will put requirements of qualification on
> distributors for them to be paid on the deeper levels. Breakage occurs
> below the bottom level. All MLM compensation plans must have
> "breakage" if the company plans to stay in business. Pyramids do not.
>
> You just can't compensate thousands of people for one sale and have a
> compensation plan that works. Look for "breakage " in all MLM plans.
> It's there. If it is not, you are being lied to.
>
> Chris
>
>
>
>
> >
> >Here is what a major Industry publication says about Matrix plans:
> >
> >"Well, unfortunately, what looks good "on paper" and "in theory" doesn't
> >always work in the real world.
> >
hack
> >
> >'NetWork Marketing Today/The MLM INSIDER Magazine', pages 110-112,
January
> >1999, volume viii, issue vi
> >
> >
Yet, for months on end, we were repeatedly told by a certain Canadian poster
that:
1. There are no distributors in Melaleuca
2. There are no salespeople in Melaleuca
3. There is no breakage in Melaleuca
4. Melaleuca is not an MLM.
And, your assumption about "breakage" seems to be that the company is
entitled to retain a portion of the commission dollars it has promised to
pay out. Yet, I can think of at least one company where every single cent of
commissionable income is paid on every single sale. Where the company
retains $0.00 of commissions. And that has been in business for 28 years.
How is that possible? Simple. The company spends 35% of revenue on
"product", pays out 25% in commissions, and retains 40% for operating
expenses and profits. Just like non-MLMs do (approximately).
You also seem to think that a large sales organization means that there must
automatically be "breakage". Call up IBM, WalMart, or any other massive
organization, and explain to them that some of their people can not be paid
on the revenue they generate.
See, when you don't tie compensation to volume requirements (except at bonus
levels), the laws of marketing dictate that even in Breakaway legs,
compensation can be earned and paid to extremely deep levels. As an example,
again quoting from 'NetWork Marketing Today/The MLM INSIDER Magazine':
"So, a six generation breakaway plan could in actuality pay on upwards of
30 - 45 levels of distributors."
[page 102, vol.viii, issue vi]
I will leave it up to you to do the math on a 12 generation breakaway plan.
Please bare in mind that absolutely no Network Marketing organization would
ever "fill" a compensation plan that reaches 100 levels deep. Why? Two
reasons:
1. The higher you personally are on a commission/bonus plan, the more
profitable it is to build wide. Both immediately and long term.
2. If you only assume three front line people at level one, do the math for
how many people it would take to run the same pattern down 30 to 45 levels,
much less 100 levels. It is *simply not possible*. Since it isn't,
"breakage" as you define it is *highly* unlikely.
It is not only possible, but common, to find successful MLMers with 40 or 50
front line distributors, out of whom perhaps 10 will be active, each of
those with an organization of several hundred people, reaching 5 or more
levels deep in each. In fact, one could argue that it is the only way to be
successful.
The simple truth is that Network Marketing companies that promise the least
work pay the least money per distributor. The companies that are up-front
about what is required generally pay the most. Regardless of "compensation
plan", the reality is that those who work the hardest make the most. So why
chose a compensation plan with guaranteed, built in breakage only 5 levels
deep? Especially when you have to promise "income" in order to make a sale?
The other simple truth is that once people find out that in order to
actually make money in your plan, they have to sacrifice X hours of their
time, they drop out like mad. Here is why:
24 hour day - 7 hours sleep = 17 hours.
17 hour day - 8 hours at work = 9 hours.
9 hour day - 2 hours travel and prep. time to and from work = 7 hours.
7 hour day - 1.5 hours eating, simple household duties, etc. = 5.5 hours
5.5 hour day - 1.5 hours taking kids places, etc. = 4 hours
Now, this is the amount of time, not counting weekends, that the average
person entering Network Marketing has. Four hours a day, to be with their
family, to be with their friends, to relax (and that doesn't count hobbies
or taking work home or working more than 40 hours a week, either). And you
come to this person and say that if they will only give 5 hours a week to
your "opportunity" for say 3 years, they will be better off? Maybe. Or they
could be dead. And in the meantime, they will be compensated a few dollars a
month in the form of "rebates", which you represent as "income". Is it any
wonder that anyone who can actually build a functioning, active downline
must:
" ... [teach] diligence, salesmanship, and [have] an ability to train
character traits only a small percentage of the American population
genuinely posses."
[ibid.]
The inability of most "sponsors" to teach these qualities, or to even model
them, is the number one reason for failure in MLMs, IMHO.
While it is true that almost every MLM I know of depends on "breakage" to
add to it's bottom line, that may be because almost every MLM I can think of
was created *as* an MLM, by people who simply wanted to be at the top of the
pyramid, and so the compensation structure has been carefully designed to
ensure breakage. Starting with the predecessor to Amway, and including
Melaleuca. They are not "product driven" at all.
And here is the simple proof of that:
List six people in your MLM who made a six-figure income last year by
selling the product themselves, and not through recruiting, overrides or
bonuses.
Russell Glasser
experience it for yourself.
I strongly advise you to take the blue pill.
In article <xWVr4.4106$Pa1.1...@news6.giganews.com>,
"RLR" <lyn...@surfsouth.com> wrote:
> This is a multi-part message in MIME format.
>
> ------=_NextPart_000_005C_01BF7BA2.19BE8D20
> Content-Type: text/plain;
> charset="iso-8859-1"
> Content-Transfer-Encoding: quoted-printable
>
> What does a forced 5 X 5 matrix mean? It means that each person can =
> only have 5 direct referrals. The maximum # of people you can have in
a =
> 5 X 5 matrix is: 1st level =3D 5, 2nd level =3D 25, 3rd level =3D
125, =
> 4th level =3D 625, 5th level =3D 3125. Total # of people you can have
=
> in your matrix for each program =3D 3905. A 5 X 5 matrix works
because =
> whenever someone has more than 5 direct referrals, they are put under
=
> the people who are already under them. This helps to distribute the =
> referrals more evenly and helps everyone in the matrix earn more
money.=20
> A full 5X5 matrix is worth around $4,900 per month. To join a 5x5
matrix =
> club, click here!
> http://moneyfornothing.theshoppe.com/matrix.htm
>
> ------=_NextPart_000_005C_01BF7BA2.19BE8D20
> Content-Type: text/html;
> charset="iso-8859-1"
> Content-Transfer-Encoding: quoted-printable
>
> <!DOCTYPE HTML PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN">
> <HTML><HEAD>
> <META content=3D"text/html; charset=3Diso-8859-1" =
> http-equiv=3DContent-Type>
> <META content=3D"MSHTML 5.00.2014.210" name=3DGENERATOR>
> <STYLE></STYLE>
> </HEAD>
> <BODY>
> <DIV><FONT face=3DArial><FONT size=3D2>What does a forced 5 X 5 matrix
=
> mean? =20
> It means that each person can only have 5 direct referrals. The
=
> maximum #=20
> of people you can have in a 5 X 5 matrix is: 1st level =3D 5,
2nd =
> level =3D=20
> 25, 3rd level =3D 125, 4th level =3D 625, 5th level =3D 3125. =
> Total # of people=20
> you can have in your matrix for each program =3D 3905. A 5 X 5 =
> matrix works=20
> because whenever someone has more than 5 direct referrals, they are
put =
> under=20
> the people who are already under them. This helps to distribute
=
> the=20
> referrals more evenly and helps everyone in the matrix earn more
money.=20
> <BR><FONT color=3D#ff0000><STRONG>A full 5X5 matrix is worth around =
> $4,900 per=20
> month. </STRONG></FONT>To join a 5x5 matrix club, click here!<BR><A=20
>
href=3D"http://moneyfornothing.theshoppe.com/matrix.htm">http://moneyfor
n=
> othing.theshoppe.com/matrix.htm</A></FONT></FONT></DIV></BODY></HTML>
>
> ------=_NextPart_000_005C_01BF7BA2.19BE8D20--
>
>
--
"The reasonable man adapts himself to the world;
the unreasonable one persists in trying to adapt
the world to himself. Therefore all progress
depends on the unreasonable man."
-- George Bernard Shaw
Russell may be heckled at
http://rglasser.home.texas.net
Sent via Deja.com http://www.deja.com/
Before you buy.
chr...@canadawired.com
wrote:
>The simple truth is that Network Marketing companies that promise the least
>work pay the least money per distributor. The companies that are up-front
>about what is required generally pay the most. Regardless of "compensation
>plan", the reality is that those who work the hardest make the most. So why
>chose a compensation plan with guaranteed, built in breakage only 5 levels
>deep? Especially when you have to promise "income" in order to make a sale?
The 5x7 expandable matrix:
The Melaleuca payplan starts at 7 levels deep and 5 wide, holds approx
97 000 people, has an expanding top line. The plan severely limits
spillover to those that deserve it. There is no easy ride here. The
million dollar earners only fill about 10% of thier matrix and that's
only if they didn't have 20 or more front lines.
The only people in the matrix are active customers that purchase every
month, and you can move non-performers to customer legs.
>--
>I do wish we could chat longer,
>but I am having an old friend for dinner.
>
>Dr. H. Lector
Seems you are bitter about MLM in general and that's OK.
I will respect your opinion, and will take it as just that. I do not
have as much time to hash over this as you do, and really it is
pointless from a productivity point of view. I would suggest however
that you re-visit your research on modern matrix plans again.
There was a time when Matrix plans were nasty I agree, but those
companies are probably all out of business by now. There are ways to
make money in most payplans, but only if people are ordering product
every month, and duplicating their efforts.
Thats not just opinion, thats the bottom line.
Moving on...
Chris
J.A. Guy
<chr...@canadawired.com> wrote in message
news:38b4d2c4...@news.canadawired.com...
least
> >work pay the least money per distributor. The companies that are up-front
> >about what is required generally pay the most. Regardless of
"compensation
> >plan", the reality is that those who work the hardest make the most. So
why
> >chose a compensation plan with guaranteed, built in breakage only 5
levels
> >deep? Especially when you have to promise "income" in order to make a
sale?
>
> The Melaleuca payplan starts at 7 levels deep and 5 wide, holds approx
> 97 000 people, has an expanding top line. The plan severely limits
> spillover to those that deserve it. There is no easy ride here. The
> million dollar earners only fill about 10% of thier matrix and that's
> only if they didn't have 20 or more front lines.
> The only people in the matrix are active customers that purchase every
> month, and you can move non-performers to customer legs.
>
Oh, I am sorry. I had recalled it as a 5 X 5. Well, that changes everything,
certainly.
The Melaleuca Matrix theoretically holds 97,000 people? The best
distributors fill maybe 10% of that? Your words. This 5 X 7 Matirx typically
is only able to generate 9,700 people for the hardest working, best
participants? A 5 X 5 Matrix fills at 15,625 people (A 5 X 7 takes 390,625
people -- do the math. What you are talking about is a 2.4% level of "fill",
not even close to 10%.) So, the "opportunity" to add new Matirx plans is
pretty hypothetical, isn't it, since you never come within 90% of your
(mistaken) estimate for filling the first one. Or is the truth that people
start new Matrix organizations in order to re-kindle excitment in new
recruites for being at the "top" as the old matirx looses momentum and dies
on them?
And as long as you continue to make a minimum monthly purchase, you are
still in this hypothetical income stream, so what is the "hard work" that is
required? The explicit promise of Matirx plans is "spill-over."
Since you move people who do not make a regualr monthly purchase to
"customer legs", that enables you to do two things:
1. Claim a higher re-order rate than you really have. Because you only count
people who are still hanging in there waiting for the Matrix to fill.
2. Claim that the people who quit buying every month are still "customers".
But a customer is someone who buys things, you see.
>
> Seems you are bitter about MLM in general and that's OK.
In general? Yea, me and about 90% of the people who have ever been in one of
your "closed-system buyer's-club cash-flow generating schemes."
> I will respect your opinion, and will take it as just that. I do not
> have as much time to hash over this as you do, and really it is
> pointless from a productivity point of view. I would suggest however
> that you re-visit your research on modern matrix plans again.
>
Why? Your plan has not changed in several years, and the article I quoted
was written only 14 months ago. A typical MLMer response -- "Yes, there were
abuses in the past, but all that has changed..."
> There was a time when Matrix plans were nasty I agree, but those
> companies are probably all out of business by now.
You guys are still there.
> There are ways to
> make money in most payplans, but only if people are ordering product
> every month, and duplicating their efforts.
You mean participating in the hopes that the matrix will be filled below
them and that they will begin to actually see something more than a 5%
rebate on their own spending?
Or you could try actually selling something at retail. And building an
actual sales-team, instead of another "buy from your own store because you
will make money some day" so-called "income opportunity." As soon as your
downline people realize they will never see dime one from this
"opportunity", they are gone. Just like every other MLM that recruits
"customer/participants" with the promise of income.
> Thats not just opinion, thats the bottom line.
>
That most of the people in Nutritional/Home & Health Care MLMs never see a
dime from these plans beyond the "rebate," because the average person only
recruits 2.6 people (so that Matrix plans almost never generate enough
volume to start paying anyone except the top people), is a given. And that
means that if you are depending on people to "order product" and "fill their
matrix" your "bottom line" will be $0.00.
You avoided my question, too. So what if you have "million dollar earners"
due to building this so-called business. All that means is that a whole lot
of people are in their downlines hoping to get even through spending more
money every month. (An interesting concept in and of itself.) If you are not
simply a cash-flow generating scheme, but a true business with a truly
valuable product line, name six people in your MLM who made even a decent
six-figure income by selling your products to non-participants at retail.
>
> Moving on...
> Chris
>
Always glad to see another Melaleuca salesperson moving on....
gARY
<rgla...@texas.net> wrote:
>
>Unfortunately, no one can be... TOLD... what the Matrix is. You have to
>experience it for yourself.
>
>I strongly advise you to take the blue pill.
Or the strong pills untill you are blue.
--
gARY
Email=> Change "uk.co" to "co.uk".
Site => http://www.JustServices.com/