Friday, December 19, 2008

Magic Pulsating Matrix - MLM meets Robin Hood

There's a new matrix compensation plan on the scene, & it's got a lot of people really excited. In a recent recorded interview with Kathy Hamilton, Grant Andrews, the owner & creator of Message Magic Software introduces his marketing engine of choice. Mr. Andrews calls it a "Pulsating Matrix". So is this the silver bullet for a successful matrix comp plan?

It seems Mr. Andrews discovered the weaknesses of the matrix are:

1. Income Ceiling: a full matrix can not pay residual income beyond the last full position.
2. Dead Beats: reps who count on spill-over to make money, without sponsoring.
3. Low Retention: an inability to sponsor causes many to view the membership fee as a financial drain, so they quit.

These are some serious problems & Mr. Andrews' desire to eliminate them is admirable. However, I believe this comp plan adds new issues to the mix that will make this comp plan even less attractive than a traditional matrix. Here are some of my first prediction about this comp plan & the future of this company.

How does this new matrix solve the old problems? Is it the answer to all the woes of a matrix? For the answer to the first question listen to the interview & click on "Lazzeosangel" mentioned above. As for the second question, well the way I see it this is another way of taking from the rich & giving to the poor.

I predict this new style matrix will create several new challenges. Here's the first one.

The New Puppy Syndrome

The company will be populated mostly by Blues who are excited by anything new & shinny. These adrenaline junkies will create a huge growth bubble, until they realize this comp plan will not help them build really big. The second & third "pulses" will slam their enthusiasm & their businesses into the dirt like a grounder at Candle Stick Park. There'll be no home run with this one.

This will be the kiss of death for these people.

Of course, the single most glaring issue for new reps is their timing in the company. With barely 2 ½ months since implementation of this new comp plan this company is no where near having shaken out all the wrinkles. The problem here is that along the way to smooth operations this company is very likely to leave a huge pile of bodies behind.

There are a few companies out there that have worked out the kinks, stood the test of time, & developed a fair & equitable compensation plan. Is this company with its new magic pulsating matrix one of them? Only time will tell. Perhaps a better question to ask yourself is, "Do I want to be the next guinea pig?

I appreciate you,

Bill Tessore

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