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

MLM Comp Plan Ups And Downs - The Uni-Level

In my previous post "MLM Comp Plan Ups And Downs - The Binary" we looked at the attractive and the not-so-attractive sides of the Binary compensation plan. Now let's see what turns people on and what turns people off about the Uni-Level.

WARNING: fail to ask these 3 questions at your own risk!

1. How much volume do I need to make a given income goal?
2. How many people do I need to make a given income goal?
3. What do I need to do to make a given income goal?

Uni-Levels typically allow infinite width and very limited depth. Few uni-levels ever exceed 4 or 5 levels of sponsorship.

Here are the Uni-Level turn-ons.

1. It's a great "one-trick pony" plan: one product companies like this comp plan.
2. It promotes personal sales: the highest percentage of income is earned from front line sales, usually 20% to 30%.
3. It drives the behavior of product movement:
4. This plan eliminates manipulation: unlike the matrix or the aussie 2-up team members are not "spilled" or "given" to the upline sponsor, so there's no system cheating.
5. Simplicity: it's easily explained and understood.

Here are the Uni-Level turn-offs.

1. It's just so shallow: If your lowest level team member sponsors someone you get NOTHING.
2. It discourages upline support: second, through final level commissions are usually much smaller than personal commissions. (ex.: levels 1 through 5 pay 30%, 10%, 5%, 3%, 2% respectively.)
3. One-time commissions: residual income is non-existent.
4. There's no rest: one product means reps are constantly hunting for new customers like vampires for new blood.

The uni-level comp plan offers no pay-off for unscrupulous manipulation. Plus upline support is often harder to find than an honest politician. And the lack of back-end products creates a "sell, sell, sell" environment with zero provision for long-term wealth.

On the other hand, uni-levels are easy to understand, and sales people love them because they pay best for personal sales.

If you want a work at home sales job, then the Uni-Level compensation plan is perfect for you. If however, you are a future oriented person who wants to build a powerful business for a little while and then enjoy the rest of your life, then move on.

I appreciate you,

Bill Tessore

MLM Comp Plans - Aussie Two-Up Breakage

In MLM Comp Plans - The Beloved Aussie Two-Up we saw why this compensation plan is so popular with some network marketing companies. Now let's bounce on over and take a look at how they create breakage down under.

I tell ya kid that Joie is a wreckin' machine!

The two forms of breakage in the Aussie two-up makes this comp plan as brutal as boxing with a kangaroo.

The First Two Rounds
Your first two recruits automatically go to your up-line sponsor who talked you into getting into the ring. Oy! Score two rounds for the 'Roo!

The High Entry Fee
Naturally you have to buy the product to qualify to get a check. So besides going the distance with that slap happy marsupial you get to pay really big bucks for a product or service that can often be found elsewhere for much less … if not for free.

What are your chances of going the distance?

Most folks who choose a company with an Aussie two-up comp plan hear about the big commission checks and jump right into the ring. They don't know that kangaroo is the champion because 97% of all contenders rarely go that third round and get a personal downline recruit of their own.

The would-be entrepreneur who finds herself facing this brute from the Out Back now must try to get to that coveted third round because that's the only way for her to make a profit.

There are many network marketers out there who faced Joie and have only scars, empty wallets, and broken dreams to show for it. For those who survive this mlm nightmare with big Joie it's still a tough fight because now they have to find another hungry kid eager enough to face him in order to get a check.

Are you a network marketing Muhammad Ali? Then good luck kid, you'll need it. If you'd rather avoid a beating, get all the credit (and money) for your efforts, and not pay a fortune, then look for a company that will treat you right and help you go the distance for that long-term residual income you deserve.

I appreciate you,

Bill Tessore