Howard
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> Laurence Eu wrote:
[snip]
>The reason I am writing to you, and I hope you do not mind this imposition, is to find out what you mean by a "forced matrix" plan in MLM.
[snip]
A forced matrix is one in which your organization is constrained in the number of people on any given level. For instance, in a 3x5 matrix, you can only have 3 people on your first level, each of whom can only have 3 people, etc., down 5 levels. That means that if you personally recruit more than 3 people, they will be placed under your first level in the next open spot. This is called 'spillover', and it is heavily promoted as a benefit of a forced matrix. In fact, it encourages laziness, because it provides an incentive to just wait around for your upline to do the recruiting. In practice, very few members of a matrix organization ever seen any growth past the 3rd level.
The vast majority of MLM's that survive past two years use the form called "stairstep breakaway". As far as I know, no forced matrix plan has ever survived its third anniversary, although there are some MLM's that started that way, and then modified the matrix to a different plan. It's possible that I missed one, so if anybody reading this knows of an exception, feel free to enlighten me.
Since you are new to NM, I strongly suggest that you go to your public library, and read some books on NM and MLM in general. Here's my list of things to look for in an MLM:
- A product that can be sold at retail to non-members. This is the most important point in this list. This is the one that eliminates the overpriced fruit-juice peddlers with the disingenous quasi-medical claims.
- Avoid forced matrices and 'Aussie' 1-up or 2-up plans. Forced matrices implode under their own weight, and AFAIK, the 'Aussie' plans are all motivational seminar scams, without exception.
- Sales tools must be sold at or below cost to be legal in an MLM. This would eliminate the MLM's offering "replicating backend" websites that cost about 50 cents a month to maintain and are sold to the members for $10/month. This also rules out the Quixtar tools scam, which is still being tolerated by the corporate office.
- All income must be derived from retail sales of product, period. That rules out anything even resembling a recruiting bonus or a side-business like the Quixtar tools scam.
- Commission on personal sales should be substantially higher than overrides.
- No forced buying, period -- even if it is an amount that you could reasonably personally use. This includes, but is not limited to, 'frontloading' or stockpiling.
- Avoid any plan where you can "buy in" to an advanced position. This is just a variation of frontloading.
- Avoid any plan where you permanently lose your position in the organization for failing to meet a quota. That's just a variation of forced buying.
- Here's one I ran into: Don't join any organization that charges a "check fee" for paying your commissions. It's a ripoff.
The only MLM I've seen lately that might pass all of those criteria is Passport (Bo Short's new company). However, I am not interested in Passport because I don't care for pills, potions, & lotions companies. Plus, I have not examined it closely enough to determine if it meets all my other criteria. I'm pretty much no longer interested in any company not related to the insurance business in some way, and even in the MLMs that I use for insurance-related products, I am not interested in recruiting; I chose them for products that I can sell to my clients.
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