Presented by Daniel Toriola
Network marketing is an outstanding business, with gross income possibilities. Even So, because of this,
people start scams and pyramid schemes and promote them as honest network marketing to make them seem
legal.
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Enter The Matrix – Pie In The Sky Or Digital Sweat Shop?
By Tim Whiston
One of the most commonly used buzz terms in the home business niche is ‘matrix plan’. It has a
nice ring to it I’ll admit.
Promoters often use this phrase to suggest a stable, well formulated income stream. But in reality this
type of opportunity scam is anything but lucrative for the majority of participants.
Before I continue, I want to point out that almost all matrix programs fall under the FTC’s classification
of pyramid schemes and ponzi scams. They’re illegal systems that allow a few con artists to fleece the
gullible masses.
Having said this, I want to focus not on the legal ramifications, but on the sheer logistics involved in a
matrix program.
In a nutshell, a matrix format requires you to invest money into a perceived business opportunity, and
then recruit new investors to the opportunity in an effort to recover your investments and earn profit.
Typically you receive only a very small commission from each new referral, and therefore need to
gather a large number of recruits in order to achieve a decent income.
Here’s a quick example of how a common matrix structure might work:
You pay $295 to participate in a home business opportunity (red flag number one, by the way).
You then must recruit three other people to fill your first matrix level. Each of these new referrals might
earn you a $20 commission.
Each of these new recruits will then need to refer three people to their first level. Those individuals who
are