Monday, December 22, 2008

Magic Pulsating Matrix - MLM Meets Robin Hood pt. 2

In my previous post, I predicted how things will turn out for the blues who join Mr. Andrew's company with its new style target="_blank">matrix compensation plan>. It wasn't pretty.

If you read my post about how the yellows> I think, you'll see the prognosis isn't much better for them.

The best way I know to illustrate this is with a story.

One day Dan joins this company. Dan, being yellow, needs to help his team build & he loves being able to put people under people. Dan was attracted to this comp plan for these reasons. Dan & some other yellows even like the idea of putting the last first during pulse #2 & #3 … then their builders see their incomes drop like rocks during those pulses.

What do you think Dan's team does when their checks plummet 20 days out of every 30? Some just quit,. Some call Dan up to ask him what happened. Even though none of Dan's team gets mad, Dan's nurturing side takes this personally. means Dan becomes frustrated & unhappy very quickly.

On top of this, being analytical, Dan wracks his brain trying to fix this problem. Sadly, Dan finds no solution to help his team.

Ultimately, without some change in the comp plan to alleviate that 80% annual income drop, relative to what pulse #1 pays, Dan finds no solution. Team members drop out like flies … & Dan blames it all on himself.

This is the kiss of death for Dan. He believes he failed his team. Worse yet, because Dan has made the company a lot of money they let him carry that guilt. Dan is devastated.

I've seen this before. It happens all the time. No distributors are at fault in this scenario. The prospects & reps simply don't know that the company sets people up for failure from the start.

The magic pulsating matrix is no exception. The company designed it so they would be the only ones receiving a consistently building income. No comp plan is perfect, but some companies have worked hard to create a fair comp plan. If you're like Dan I suggest you save yourself the pain & look for one of those companies.

I appreciate you,

Bill Tessore

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