|
The "Matrix List" by which the sites receive their name would be what is known as a straight-line matrix, or one-by-X matrix. This is similar to many MLMs that use Y-by-X matrices to fill a down-line.
For example, one situation may be a one-by-10 matrix for a Sonyvideo [[PlayStation]]game console (a common reward). In such a matrix the site would usually sell an e-book for $50 to be placed on the list. After nine additional people purchased a spot, the first person would receive either a PlayStationvideo game console (or cash value equivalent) and would be removed from the list. The person who had been second would move up to the first spot and an additional 10 people would have to purchase spots in order for that person to receive a PlayStationconsole. It is this orderly movement which has also given the name "elevator scheme" to these sites, as people move up the "elevator" (escalator, ladder) to the top at which they would then "cycle" out of the matrix.
In such a matrix, nine9 out of 10, or 90 percent, of all customers will not receive the reward item, because the rules of the scheme are that one reward is issued for every 10 customers that join. (The fact that the reward is issued to the customer at the top of the list doesn't change the proportion of rewards given to customers signed up.) Supporters claim that additional revenue streams from advertising are used to keep the lists moving. However, detractors claim that it is impossible to generate enough outside revenue. If the entire world were to join the list, 90 percent of the world would be unable to cycle if the site did not draw sufficient alternate revenue streams. Adding more people to the list does not change the fact that the majority would receive nothing without these streams.
Additionally, the amount of time needed before a given individual will receive the product in question is often mistaken. In a matrix in which 10 people must sign up before cycling, the first person to join only needs nine additional sign-ups to cycle, but the second person needs 18 additional sign-ups: eight more for the person above him, and then 10 more for himself. The third person on the list likewise needs 27 additional signups: seven for the person on top of the list, 10 for the person directly above him, and then 10 for himself. The number of people required continues to grow for each new person joining the list. For the 10th person to cycle a total of 100 people would have to sign up, 1000 for the 100th, and so on.
Through this process, the matrix scheme generates substantial profit for its organiser. At the time of its popularity, for example, a PlayStation 2 cost a maximum of $299. After selling 10 $50 e-books, the organiser hascould mademake $500, and cancould purchase a PS2 for $299 to send to the first bidder while retaining a $201 profit. This same process repeatscould be repeated every time the matrix cycles. For example,; if the matrix cyclescycled 10 times, the organiser willwould have sold $5000 worth of e-books, of which $2990 willwould have been spent on 10 PS2s, leaving them with a profit of $2010.
==In queueing theory==
|
