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The Matrix Scheme Scam

Sunday, March 9th, 2008 | Other Online Scams with

I’m sure you’ve seen many varieties of the matrix program.  They usually contain the statement “If everyone does the same thing” and come in many different flavors.  There are 3×9 matrices and 2×2 matrices and 3×3 matrices.  There are matrices of unlimited width and matrices that feed into other matrices.  In fact, there are as many combinations of matrices as there are ways you can put people into a matrix.

You can create almost any type of pay plan with a matrix and there are many many kinds of plans.  There is nothing dishonest about this arrangement, in fact it is one of the few plans that actually pays out less than it brings in, which makes it sustainable.  This is good for you and good for the program owner since it means that theoretically the matrix can continue forever.

Matrix plans are extremely flexible which is why there are so many variations on the matrix theme.  Because you can create almost any kind of pay plan with a matrix they can be created good, no so good and even downright bad by those who let greed overcome them.  The pay plans of matrices can be as different as night and day.

But, the matrix plans do all have one thing in common.  They all rely on the statement “If everyone does the same thing”.  Ask yourself when is the last time you remember that everyone did the same thing.  I think you’ll come up with the same answer that I did “Never”.

So, there are some things you need to know about matrix programs before you join one.  The first thing is how things work when everyone does the same thing and the other is how to tell a good matrix from a bad matrix.

 

 

How do things work when everyone does the same thing?

This one is easy to answer because the truth is that it never happens.  There is no time when everyone will do the same thing.

You can count on that being true always.  There will never be a time when everyone does the same thing.  Never!

Make sure you read the small print on those matrix websites.  They all contain some form of the statement “The example shown here is for illustration only.  Income from this program depends on many factors and your income may be more or less than is illustrated”.

What they are telling you is that the example they give is for a perfect world where everyone does the same thing, but they know that will not happen and want to cover their butts.  They know that what will really happen is that a few people will do a lot, some people will do a little and the majority of people will do nothing at all.

Let’s take a look at a common matrix and you can get a better idea of how this works.

I am going to use the example of a 5×8 matrix which means there are 5 positions below each person in the matrix and the matrix extends 8 levels deep.

The matrix costs $15 to join and you get $3 for every position below you in the matrix so if you fill the first level below you it is enough to cover your monthly subscription.  Anything below that is profit for you.

So, you are at the top of the matrix and you are working hard to add members below you.  You get 10 the first month so the first 5 go directly below you and the other 5 are spillover which means they go into the third level.  In addition, those 10 each get 2 more to join.  There is now you at the top, 5 below you, 15 below them in the third level and 10 in the fourth level.

You now have a total of 30 people below you which means you’re making $90 and only paying $15 for your subscription for a profit of $75.  Not bad after one month.  Let’s see what happens if the same thing happens the next month.

You’re still working really hard and get 15 people to join this month.  The 5 people in the next level want to get their positions filled and they each get 2 people as well.  The others…well they aren’t seeing the profit from last month and are just hoping to get some spillover from you.  All 25 of them together just bring in 5 people.

That’s great for you because now you’ve got a total of 60 people under you.  You made a profit of $165 this month and you’re feeling pretty good.  This seems to be moving along very well and you’re looking forward to next month.

But wait, everything is not perfect with this picture.  As you can see everyone is not doing the same thing.  You’re working a lot and the people right under you are working a little, but most of the people are not working at all.

How long can the matrix continue this way?  You may think you can sustain it, but you would be wrong.  With 60 people under you’ve filled levels 1, 2 and 3 which is great, but you are only half way to filling level 4 which needs 125 people.  You can probably do that the way things are going, but what next?  Level 5 needs 625 people to fill it, can you do that?  And level 6 will need 3125 people while level 7 needs 15,625 people and level 8 needs 78,125 people to fill it.

So, what happens when someone doesn’t get 5 people below them?  Well, they may hang in there for a month or two at which point they will give up since this program isn’t profitable for them.  So they quit the program.  Well one person quitting isn’t a big deal, but now the person above them isn’t making enough to pay for their subscription either so they quit.

With 3125 people on level 6 how many do you think will quit after just one or two months of not paying for their subscription?  That’s right a lot!  And that sets off a chain reaction up the line as the entire matrix collapses from the bottom up.

Basically, the further the matrix gets filled the more likely it is that new members will not earn any commission because everyone doesn’t do the same thing and it is impossible for a handful of people to keep filling thousands of empty positions in the matrix.

On average most matrices collapse like this within 12 months of being formed.  It is just unrealistic to expect that everyone will do the same thing.  Most people won’t which makes the matrix impossible to sustain.  It will (and has) collapse every time.

 

How To Avoid The Scam

 

First you need to know how much the matrix will potentially pay out if all of the positions are filled.  To get this number simply add all of the commissions paid through each level if the matrix were filled.  This will tell you how much the owners profit is on the matrix. 

A lower profit is obviously better since it means more money is being paid out to members.  Of course the owner will also have the first position in the matrix.  And there is no way to know if he/she has taken additional positions as well.

You should also consider the pay outs for positions on each level.  Some matrices are set up to pay out a lot for the first level to help members become profitable quickly.  This is good if you’re in early, but it means that there is less money left for later positions when there are more total members.  This can limit the overall potential of the matrix.

Other matrices will offer higher payouts for levels 2 or 3 in the members downline.  This encourages members to recruit and help build their downline.  This can be an effective way to keep the matrix together for a longer period of time.

Finally, matrices can be set up to pay out on the bottom most level.  This can make some matrices look very attractive since it appears there is a HUGE potential when the matrix is completely filled.  Of course the matrix owner knows that almost every person who subscribes will never see anyone on their lowest level so he will never have to make that huge payout.

Basically matrix plans can be good, not so good or downright bad.  There are some people who do make money in matrix plans and there are also a lot of people who lose money in programs that have matrix pay plans.

The difference is that the people who make money in matrix plans know that everyone won’t do the same thing and that it takes a huge amount of time and effort to fill a matrix and keep it filled.

Those who lose money in matrix pay plans are the majority of people who sign up and then think that someone else will fill up their matrix because others will do the same thing they did and there will be enough spillover to go around.  As you’ve seen it just doesn’t work that way.

If you don’t want to be one of the people who has lost money in a program with a matrix pay plan then always remember that the only way you will be successful with any program is to put a lot of work into it.

There is no such thing as a lazy man’s way to get rich and don’t expect that everyone will do the same thing.  The only way to become successful at anything is through hard work and effort.  Don’t expect others to do your work for you because they won’t.  Period.

If you do get into a matrix and there is someone else who is working as hard as you in the matrix then that is just icing on your cake.

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