How To Tell A Good Matrix From A Bad Matrix

By Author: Jim DeSantis
Total Articles: 103
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You've seen them. They're everywhere. The matrix is probably one of the most solid pay plans because it pays out less than it brings in. That means it's sustainable, which is good for you and good for the program owner. But, they are tremendously flexible by nature and that opens the door to greed. Matrix type programs can be very good or very bad. Here's how to tell the difference.

Some matrices are set up to pay large amounts on the first level to help their members get into profit quickly. That can be a good thing, but it leaves less money that can be paid on positions in the lower levels where there are more members. That results in a lower potential overall.

Other matrices are designed with higher payouts for level 2 or 3 to encourage members to help their downline members build their groups. And still other matrices are designed with a higher payout on the very bottom level. This is to make it appear that this particular matrix offers huge potential but the owner knows that 99.9% of people who try (and pay to try) will never see anyone on their lowest level so he will probably never have to pay out ...
... that large amount.

Here are some facts about matrix pay plans:

1. Some people make money in programs that feature matrix pay plans and some people lose money in programs that feature matrix pay plans. Results depend upon design of the plan and how hard one works at it.

2. You need to remember what's always stated in the fine print... "This example is for illustration purposes only. Your income may be more or less than what is shown in this illustration." or some wording to that effect.

3. All matrix plans have one thing in common: They all rely on "everyone doing the same thing". Know this: there will never be a time when everyone will be doing the same thing! There may not be much else you can count on but you can count on that! Instead, here's what you'll see - A few people will do a lot, a few people will do a little more but most people will do nothing!

So... how does that affect a matrix?

Let's look at a very common matrix configuration and apply some common sense.

Let's use a 3X9 matrix. This simply means that the most positions immediately below any other position is three and the matrix extends a total of nine levels down.

Let's say the program costs you $18 per month and the first level pays you $6 per position. It's a "get 3 and yours is free" type of arrangement. If you can fill your three first level positions with members, your $18 in monthly commissions is enough to cover
your $18 per month subscription cost.

At the top of the matrix is you and you are working hard to promote this program in hopes of filling your matrix. You get three and they each get three and the additional members you refer are "spillover"... meaning they fill open spaces below the first level in your matrix. Everything is humming along just fine and you're starting to see some real progress. But every line has an end, doesn't it?

At the end of every line is someone who doesn't have three on his first level. That member isn't earning enough commissions to cover his costs so he decides he doesn't need to keep paying the monthly subscription fee and quits. Suddenly the person who was up one level from him no longer has three on his first level, so he's no longer earning enough to cover his costs. He's operating at a loss and decides he doesn't need to keep paying the monthly subscription fee and quits. Suddenly the person who was up one level from him no longer has three on his first level so he's no longer earning enough to cover his costs. He's operating at a loss and decides he doesn't need to keep paying the monthly subscription fee so he quits too and up the line it goes. You watch as your entire group collapses from the bottom up.

Can one person leaving a matrix really cause it to collapse?

Consider this - Each level in a 3-wide matrix has three times as many positions as the preceding level.

A few members dropping out may not mean much, but imagine hundreds of members dropping out because they don't want to continue operating at a loss. That would cause a shockwave that could result in a huge part of your group simply evaporating!

So you see... the whole idea of "if everyone else doing the same thing" is necessary in order for a matrix to succeed which is an impossibility in the real world. It has never happened and never will.

The people who make money with matrix plans understand that everyone willnot do the same thing. They know it takes a lot of work and a long time to fill a matrix and keep it filled and they do it so they make money.

The people who lose money think they can just sign up, refer a few people, and then "everyone will do the same thing." Human nature shows us this is simply not true.

The primary lesson here is: Realize that any legitimate program requires work! If you choose to make money in a program that features a matrix type pay plan, don't expect everyone in your downline to do the same thing. It will not happen. If you want to succeed, then you have to be willing to do the work yourself. All of it! And, if someone in your matrix decides to work as hard as you, that's just a bonus.

Jim DeSantis is a retired TV News Anchor and partner in Online Business Alliance ( here ), a group of like-minded people helping each other succeed on line. Jim also publishes "Gifts from Jim DeSantis" ( here ), a blog offering free ebooks and software on many topics.