subject: Advantages and Disadvantages of a Forced Matrix [print this page] Advantages and Disadvantages of a Forced Matrix
Due to the nature of the opportunity, a significant part of the income derives from referral commissions paid by the company for each successful referral sign-up. The referral positions in a downline are commonly referred to as a matrix. MLM companies pay commissions for several levels in the affiliate's referral downline, two-tier affiliate companies for two levels.
Even though affiliates are encouraged to support their referrals, not all companies permit re-positioning referrals in their downline matrix. Moving new referral signups to their direct referral's downlines, helps them earn commissions sooner and contribute to build a retentive downline. Even when the company allows it, most limit re-positioning of new referrals to one or two levels deep. With a Forced Matrix, however, there are advantages.
A Forced Matrix is an affiliate compensation plan utilizing a simple matrix system with a set width and depth. For instance, a 6x6 matrix consists of six referrals in the top level and six referrals in each leg, making thirty-six referrals in all. Most affiliate companies pay commissions from a limited number of levels in your downline, usually between two and five levels.
One of the main advantages of a Forced Matrix, is the virtually maintenance-free strategic positioning of new referral signups in a downline. The affiliates can maintain focus on driving traffic to their affiliate links and communicating with their referrals, rather than having to consistently check and manually re-positioning direct signups, as they are added.
Another perk is helping your referrals; an estimated 95% of all marketing affiliates fail to create a residual income. They struggle to learn everything and earn money at the same time. Using a Forced Matrix, their referrals will receive signups from their own efforts. This encourages the referrals to stay, and thus contribute to a growing, retentive downline.
Although the perks of a Forced Matrix outweigh the disadvantages, for the most part, some drawbacks are inevitable still; MLM companies pay a commission percentage based on the level at which referrals are positioned in the matrix. Thus, the top level referral positions usually yield the highest commission percentage. Unless the company offers an infinity bonus, which rewards the affiliates when building their downline further down, the affiliates would prefer building the best paying levels on top only.
Despite some disadvantages, a Forced Matrix is an efficient way to build downlines with most MLM companies. It will automatically position new referrals in the most strategic positions in the matrix, thus helping the affiliate free up time to advertise the program more, and helping the referrals. A Forced Matrix is just another affiliate tool, after all, not a replacement for the person promoting and supporting his referrals. Use it wisely and you will do well.
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