The new paradigm, will it work?

Written by Albin Dittli

Recently I have received several emails about programs that are touted as a new paradigm in Internet programs. These new programs are being called member-to-member programs. Here are excerpts from two such emails:

“Give yourself permission to make moneyrepparttar easy, internet way!


The whole program is managed for you! All you do is join!

No gifting....just plain and simple profit!

To receive information on how to get started - send an e-mail to....”


“The rules of Affiliate Programs have changed!

The new "member-to-member direct payment" business model is quickly changingrepparttar 122539 industry. There is no reason to join another "company-based" program EVER again.

You no longer have to promote anything to earn $150 each and every week!

Still wishing you could make moneyrepparttar 122540 easy way--- by doing nothing?

Wish No More!”

These new programs are like one level affiliate programs. Normal affiliate programs pay a percentage of sales torepparttar 122541 upline affiliate. They usually pay 25% to 50%. These new programs pay 100% ofrepparttar 122542 money torepparttar 122543 upline or sponsoring affiliate.

Another difference betweenrepparttar 122544 new programs andrepparttar 122545 old is thatrepparttar 122546 product offered by most of these new programs is a safelist, or a safelist and an ebook. As some of these programs cost $100 a day, it appears thatrepparttar 122547 safelist is only an attempt to legitimizerepparttar 122548 program.

The first member-to-member program that I saw was Cash a Day, which cost $20 a month atrepparttar 122549 entry level and $500 a month atrepparttar 122550 highest level. Their product is a safelist and some ebooks. The section on their website that describes these products contains this information, “Now Please remember its notrepparttar 122551 products (heck I could use this system to make money with a couple of packs of chewing gum). Focus onrepparttar 122552 Income Plan...”.

The plan with Cash a Day is that you join for $20 a month and every one you sponsor pays you $20 a month. As you organization and income grows you move up torepparttar 122553 $50 a month level, thenrepparttar 122554 $100 a month level, and eventuallyrepparttar 122555 $500 a month level. There is also a small administrative fee.

Another such program is My Tycoon Manager. With this program you join for $150 per week andrepparttar 122556 program administrator guarantees that they will place two members under you within ten days, so that you will earn $150 per week. Their product is a safelist.

I have received emails on at least three other such programs, all of which resemble My Tycoon Manager. There are several problems with this type of program.


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.

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