Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
MLM, Pyramid Schemes, and Matrices > NetSparsh - Viral Content you Love & Share

MLM, Pyramid Schemes, and Matrices

Have you ever wondered what the difference is? MLM operators claim they're not operating a pyramid scheme. Matrix and "forced matrix" operators claim that what they have is better than MLM. So what are the differences?

Pyramid Schemes:

Pyramid Schemes are illegal in the USA, and probably abroad. We all know how these schemes work, or at least get the jist of the idea. A person (the originator) starts by sending a message to several people. Usually people he/she knows. The message in some round about way, will tell everyone to send him $5 or so...and then send the message to someone else. All the while adding names to the list, and each new recipient must send money to the first person, second person...etc

There are a million variations of the Pyramid Scheme, but the main attribute that define a pyramid scheme ( also known as chain letter) is that there is no product, it's just people sending money. The term "Pyramid Scheme" is derived from the fact that it starts with one and the size of those involved increases as you move towards the bottom. On paper, it looks like the shape of a triangle, or pyramid.

Multi Level Marketing:

How is MLM different from a pyramid scheme? After all, on paper any MLM looks like a pyramid in reality right? The differences are very simple. In MLM there is a product being sold. Income is generated from "commissions". It's actually a pyramid scheme, except that the participants get something back...regardless of whether the people they refer actually pay for something...

In MLM, the participant always gains from their investment. The catch is in the value of the product that the participant receives. This is the reason that MLM is so big on the internet. Because, information can have a monetary value, and it cost the distributor nothing. So ebooks, software, newsletters...etc... these are the most common products used in MLM. MLMers have added tangible products as well, and home products were the first to use MLM as a primary marketing strategy.

The Forced Matrix:

With so many MLM programs on the market these days, originators have tried to make their programs more desirable than others. Hence the forced matrix idea. In a regular MLM program, your monetary gains are based entirely on how good you are at marketing the program. However, most people arent' very good. So it would benefit the less talented if they had help from the talented. Basically, if the number of people who can join under you is limited in any way...then it's a forced matrix. The idea being, anyone else you refer extra..will go under someone else. The best implementations put the extra person under one of the people YOU have under YOU. Hence it helps the person under you, which helps you too.

The term is tossed around a bit, and sometimes not used at all. However, that is what defines a forced matrix. Sometimes numbers are used to describe a forced matrix more thoroughly....like "4 X 4 forced matrix" for instance. Which might mean that you can only have 4 people directly under you and only 4 people under those 4 who you recieve commissions from.

There is a hi-bred idea that has become common now, where by a person can deliberately place a referral in another line of their choice. A sort of traffic control attribute that helps originators get their referrals interested. This has been an attempt to make regular MLM more appealing, and it has worked. In fact, forced matrix MLMers have even implemented the option in their own programs.

The benefits of either are about equal. With a forced matrix, you stand to earn an income faster, but increases in income are slower because your referrals get forced further down the line from you. With regular MLM you have a stronger base, and sustaining it is generally easier...but first profits can be slow. If you want a little income faster, go with a forced matrix. If you want BIG profits and are willing to work a long time for it, go with regular MLM programs.

-=-=-=-=-=-=-Resource Box-=-=-=--=-=-=-=-
Avoid scams, shams and spam with Not Just Another Ezine!
Full of free downloads, ebooks and information to maximize
your time online. Subscribe free! http://annamarketing.com
mailto:[email protected]?s ubject=subscribe
-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-
This article is available for reprint in your opt-in ezine,
web site or ebook. You MUST agree not to make any changes
to the article and the RESOURCE BOX MUST be included.
(c) 2002 - 2004 AnnaMarketing.com. All Rights Reserved

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

WBIR-TV

USA TODAY NETWORK Realigns Organization to Strengthen Focus on Marketing Solutions and Consumer Businesses
WBIR-TV
Gannett | USA TODAY NETWORK announced a major organizational change today that more definitively aligns with the company's refreshed business strategy, which focuses on two primary businesses: Marketing Solutions and Consumer.
Gannett promotes executives to head business-to-business, consumerUSA TODAY
Gannett Reports Organizational Change; Maribel Perez To Lead Consumer BusinessNasdaq
Gannett Promotes 3 Execs, Focuses On Marketing, Consumer BusinessesMediaPost Communications
Zacks Investment Research -American Consumer News, LLC
all 42 news articles »

http://cbtnews.com/ (press release)

Influencer Marketing at Your Dealership
http://cbtnews.com/ (press release)
Influencer marketing, simply put, combines a social media star that has already built a reputable base with a brand that is looking to spread positive reviews about their products. Influencers that have amassed a large following and built their ...
5 Ways Marketers Can Effectively Hack InstagramForbes

all 7 news articles »

Mannatech Declares Third Quarter 2017 Dividend
Markets Insider
The company has been operating for more than 20 years with operations in 26 markets^. For more information, visit Mannatech.com. ^ Mannatech operates in China under a cross-border e-commerce platform that is separate from its network marketing model.
Insider Selling: Mannatech, Incorporated (MTEX) Director Sells $21270.00 in StockWeek Herald

all 4 news articles »

Group Promotes Network Marketing Scheme
THISDAY Newspapers
Promoters of Swiss Golden, a multi-level network marketing scheme have stressed the need for Nigerians to take advantage of opportunities created by the scheme to enhance their wealth. The Development Director, Swiss Golden, Mrs. Elena Boychuk, while ...


CNBC

This ad agency is using blockchain to create a 'cleaner media supply' network
CNBC
Blockchain technology is starting to be adopted by industries from banking to logistics, with JPMorgan Chase, IBM and UPS all talking about how they're using it in recent weeks. Now it's the turn of the advertising sector, with agency network The ...


MarTech Series

LiveRamp and Criteo Partner to Enhance People-Based Marketing Campaigns for Omnichannel Engagement
MarTech Series
Criteo and LiveRamp will work in tandem to integrate LiveRamp IdentityLink into Criteo's Commerce Marketing Ecosystem, a network of tens of thousands of retailers, brands, and publishers that enables collaboration and drives measured performance and ...

and more »

Forbes

Why China's 'New Silk Road' Is The Ultimate In Sophisticated Marketing Strategies
Forbes
Great marketing strategies need to offer meaningful Customer Value Propositions that are anchored in market insights. Likewise, every economy needs a strong value proposition for sustainable growth. For the emerging markets of Central Asia, the Middle ...

and more »

Business Wire (press release)

Kaizen Platform Is Now a Facebook Marketing Partner
Business Wire (press release)
Becoming a Facebook and Instagram Marketing Partner officially reinforces our mission at Kaizen Platform to help global brands localize and refresh high-quality video ad creative at scale. Our global network of vetted professional designers called ...

and more »

ETBrandEquity.com

US giant CBS completes takeover of Australia TV network Ten
ETBrandEquity.com
US broadcasting giant CBS is the new owner of Australia's third-largest commercial television network, the station's administrators said Thursday, ending a bidding war with media mogul Lachlan Murdoch. The Ten Network was placed into voluntary ...

and more »

TAPinto.net

There's a 'Seacret Agent' in Holmdel and Colts Neck–Melissa Mallios Brings a Billion Dollar Beauty Company to a ...
TAPinto.net
A little less than a year ago Mallios decided to focus her talent and energy selling beauty and skincare products for Seacret, an international multi-billion dollar network marketing, beauty and skincare company, whose skin products contain minerals ...

Google News

10 Killer Ways to Promote Your New MLM Program

Terrible isn't it?You just joined this wonderful new MLM and... Read More

Five Ideas for Unique (and Cheap) Marketing

Home-based businesses generally lack the large marketing budgets of bigger... Read More

Pitfalls To Avoid In Being A Successful MLM Distributor

Being a successful MLM distributor requires hard work, a determination... Read More

Opt-in MLM Leads: An Overview

In multi-level marketing (MLM), or network marketing, the MLM business... Read More

Network Marketing - Its All About Customers

Leadership, Visualization, Goal-setting, blah, blah...All network marketers have heard that... Read More

MLM Frauds ? How to Avoid Them

Abraham Lincoln said "You can fool all of the people... Read More

Associated Myths in MLM

The MLM business is so popular among people that some... Read More

Increase Sales through Store Consignment

Placing your products on consignment in a hair salon, clothing... Read More

Three Key Facets Of Successful Network Marketing

Network marketing has many aspects, but promotion, persistence, and patience... Read More

MLM: Powerlines vs. Downlines

Take every program that doesn't include a powerline system and... Read More

Starting A MLM Home Business Affiliate Program

A MLM home business affiliate program is how individuals gain... Read More

Network Marketing Companies

Network marketing companies are mushrooming up everywhere these days. It's... Read More

Homebased Network Marketing Mlm

Homebased Network Marketing Mlm has three qualities: control of time... Read More

If MLM Is So Great Why Is My Heart Over In The Corner?

It is sad many people look at previous mlm experiences... Read More

MLM Leads: How To Improve Your List

MLM Leads are the lifeblood of many network marketers. Over... Read More

Network Marketing Tips

Network marking is the ordinary person's best opportunity to make... Read More

MLM Opportunity: The 7 Hidden Things to Look for and MUST HAVE in an MLM Opportunity

That can be two words that transform your life forever,... Read More

Network Marketing Stories Sell: How to Tell Your Story Everyday to an Endless Number of Prospects

Network Marketing success is easy when we tell our stories.... Read More

MLM Success - KNOW The SEEDS of Change in MLM and Network Marketing?

The MLM Business you are REALLY In.In network marketing, you... Read More

Tips to Setting Boundaries: Making Your Office Your Own

The American Dream. Quitting your 9-to-5 job to start your... Read More

Systems Dont Fail But People Do, Does Your Company Has All Necessary Systems In Place?

The secret of success is following a proven system. As... Read More

Ten Tips for Success in MLM, Network Marketing

MLM, Network marketing is the ordinary person's best opportunity to... Read More

To MLM or Not to MLM

Whether you want to be your own boss or you... Read More

How to Attract and Excite Your Prospects

The Power of MarketingWhen you hear the word "marketing" what... Read More

MLM Network Marketing - Why Failure Rate Is so High?

In recent years people are increasingly looking for extra source... Read More