Written by Albin Dittli

Having been involved with network marketing for about twelve years and with marketing onrepparttar Internet for about two years, I have been asked several times to explain network marketing (MLM) and downline clubs (DLC).

My specialty forrepparttar 122538 last twelve years has been writing software for MLM companies, especially compensation plans.

Inrepparttar 122539 non-cyber world there are a great many different types of compensation plans. Some, like break a way plans, can be very complicated.

Onrepparttar 122540 Internet you usually see only three different types of compensation plans. These arerepparttar 122541 forced matrix, a two up system, and a uni-level program. Of theserepparttar 122542 forced matrix is by farrepparttar 122543 most common.

Forced Matrix Programs

A forced matrix is a program where each member can have only a certain number of members on your first level. This number is usually between two and six with three beingrepparttar 122544 most common. Whenrepparttar 122545 number is three, it is called a three-wide matrix. The lowerrepparttar 122546 number,repparttar 122547 more likely it is that you will receive spillover. As an example, suppose you are in a three-wide matrix program and you have three members on your first level. When you sponsor another member that new member would have to be placed somewhere below one ofrepparttar 122548 members on your first level. This is called spillover. Most companies want to be able to advertise that you will receive lots of spillover, so they make their matrix with a small width.

The other factor in a forced matrix isrepparttar 122549 number of levels on which you will be paid. This usually varies from three to 20. Ifrepparttar 122550 number is low then you will not have very many people in your matrix before it is filled. Ifrepparttar 122551 number is large, like 15, then chances are that you will never get your matrix filled. My personal preference is a program that pays on six to eight levels. Ifrepparttar 122552 program is three wide and pays on seven levels then it would be called a 3 X 7 matrix.

An important thing to look at isrepparttar 122553 percents that are paid on each level. Some put large percents onrepparttar 122554 first or second levels. Others putrepparttar 122555 large percents onrepparttar 122556 lower levels. Withrepparttar 122557 high payout percents onrepparttar 122558 higher levels you are likely to be breaking even or making money fairly fast. Withrepparttar 122559 high payout percents onrepparttar 122560 low levels it will take longer before you make any money, howeverrepparttar 122561 income potential can be fairly large. I likerepparttar 122562 higher amounts onrepparttar 122563 upper level as this favorsrepparttar 122564 person that does not sponsor very many people, which isrepparttar 122565 majority ofrepparttar 122566 members.

Uni-Level Programs

A uni-level program is very similar to a forced matrix. The difference is that with a uni-level there is no limit onrepparttar 122567 number of members you can have on your first level. Uni-level programs are commonly used with free or very low cost programs. Many ofrepparttar 122568 traffic and surf programs are uni-level. The philosophy appears to be that if it is free or very inexpensive then it is easy to recruit people.

2-Up Programs

The third type is a 2-up system. These are harder to explain. Likerepparttar 122569 matrix and uni-level, these have their roots inrepparttar 122570 non-cyber world of network marketing. Originally they were calledrepparttar 122571 Australian 2-up or Aussie 2-up. Unlike a matrix where several members receive commissions from one member, with a 2-up system exactly one person receive commissions from a member.

With a 2-up program you must recruit three members before you make any money. The commission fromrepparttar 122572 first two you sponsor goes to someone up-line from you. You receive allrepparttar 122573 commission fromrepparttar 122574 third person you sponsor, and from each person you sponsor thereafter.

You also receiverepparttar 122575 commission fromrepparttar 122576 first two sponsored by your third sponsored member, andrepparttar 122577 commissions fromrepparttar 122578 first two sponsored by each member after your third. Basically, you receive commissions fromrepparttar 122579 first two sponsored by anyone that you received commissions from. This makesrepparttar 122580 program an infinite deep payment program.

How Top Network Marketers Build Success

Written by Joe Bingham

Personally, I believe inrepparttar power of network marketing. I believe it is a wonderful idea as it makes business success more readily available torepparttar 122537 average person -- with or without previous business experience or education.

However, it is notrepparttar 122538 average person who enjoys huge success atop a powerful network marketing organization.

Unfortunately, there has been too much misinformation, dishonesty, and of course, our old friend 'hype' involved inrepparttar 122539 business.

Still, as with anything, there is truth behindrepparttar 122540 hype that can show yourepparttar 122541 way to real success.

However, despite how 'easy' everyone who is desperate to recruit you into their business will tell you it is, it's not. It takes time. It takes knowledge. It takes confidence. But most importantly it takes a PLAN.

Those largely successful in network marketing, no matterrepparttar 122542 company, have several things in common.

1. They believe whole heartedly inrepparttar 122543 company they work with andrepparttar 122544 products or services it markets.

You cannot succeed in network marketing if you are only a money seeker and do not genuinely care aboutrepparttar 122545 company you chose to work with and userepparttar 122546 products or services it markets for yourself. Hands down, don't argue with this one, just trust me.

I know there are a few 'slick' individuals that can sell anything and seem to make it work for them, but unless that's how you want to be you'll just have to find a company you actually like and are happy to be associated with.

2. They have, and SHOW, a confidence in themselves and their ability to succeed.

People are attracted to others who are successful or have confidence in what they are doing. Everyone is looking to increase their wealth or position in life and will only listen to others they see as being able to help them in doing just that.

3. They know their products, their business plan, andrepparttar 122547 likely objections they will face fromrepparttar 122548 people to whom they will present them.

Ever see someone who is high up in a network marketing organization that didn't know their stuff? Do you think they know their stuff because they are high up inrepparttar 122549 organization or do you think they knew it first and that was what helped them to get there? Think about it.

4. They have a well defined system in place for obtaining leads on people that may be interested in what they offer.

Honestly, this can berepparttar 122550 hardest part. This is where either your time, talent, or money is required, and likely all three. To succeed at network marketing, you must have a constant flow of new leads. You must set up a system that puts you in contact with others on a continuing basis.

Cont'd on page 2 ==> © 2005
Terms of Use