Thank you for taking the time to read this valuable information. Matrix Software Company has chosen to market it's shareware club memberships through a network of individuals (called sponsors) who have decided to join us in our effort to make this Automated ShareWare Catalog system a huge success. WHY NETWORK MARKETING? Network marketing has come a long way since it was introduced in the early 60's. Of all the business enterprises in America, multi-level marketing offers the highest potential with the smallest risk. Only with network marketing can an average person start with virtually no money, no experience, and no training and begin a home-based business that can start producing an income within a matter of a few days. John Naisbitt, author of Megatrends, calls networking one of the ten best opportunities for growth from now through the 21st century. With corporations such as U.S. Sprint, Rexall, Ralston Purina, and MCI turning to networking, skeptics are beginning to take a much closer look at the opportunities available through multi-level marketing. With this marketing plan, Matrix SoftWare Company builds a network of satisfied customers and offers them the opportunity to earn money by introducing others to the service. We save advertising dollars and you earn money. Here's how it works. BECOMING A SPONSOR As an ASC club member, you are invited to sign up as a sponsor and earn money from distributing copies of your catalog disk. There is no additional charge to become a sponsor. You simply sign and return one copy of the Sponsor Registration form. (select #4 at the main menu on your ASC disk) COMMISSION CALCULATIONS ON MEMBERSHIP, SHAREWARE, AND CLASSIFIED AD SALES For all non-membership type sales you will earn 50% commission. Sales to non members are not multi-level and commissions are paid only to the sponsor who's name and MRN appear on the order. Commissions on Membership sales, Shareware Sales to Members and Classified ad sales to members are multi-level and will allow you to build a strong, steady, long term income. By sponsoring new members, you will earn commission from their monthly dues shareware purchases, and classified ad purchases. As an incentive for you to help the people you sponsor to sponsor members, you will also earn commission from their sales and from those of members for nine levels down from you. This can be a substantial amount of money if you are willing to put just a small amount of effort into it. Commissions are calculated with what we call the commission matrix. The matrix is 9 levels deep and each level has a specific number of slots to be filled with paying members. Sponsors earn commission on monthly dues, shareware purchases, and classified ad purchases made by all down line members in their commission matrix. The first level of the matrix has 3 commission slots, the next 9 the next 27 the next 81 and so on. Sponsors are required to have 3 personally sponsored members in their matrix at all times to qualify for commission. Once qualified, you will earn commission from all purchases made by all down-line members in your commission matrix from now on! To illustrate the tremendous earning potential of this marketing program, let's assume that the dues and purchases from your down-line members will average $3.00 per month and that over a period of time, through your efforts and those of other sponsors in your matrix, each slot has an active member in it. This is how your commission check would be calculated. MAXIMUM TOTAL YOUR LEVEL MEMBERS SALES COMMISSION 1 3 $9 x 7% = $0.63 2 9 $27 x 7% = $1.89 3 27 $81 x 7% = $5.67 4 81 $243 x 7% = $17.01 5 243 $729 x 7% = $51.03 6 729 $2,187 x 7% = $153.09 7 2187 $6,561 x 7% = $459.27 8 6561 $19,683 x 7% = $1,377.81 9 19683 $59,049 x 7% = $4,133.43 ===== ======= 29523 TOTAL > $6,199.83 per month That's $74,397.96 per year! Remember, we're talking about purchases of only $3.00 per month from each member in your down line. The actual average monthly purchases by our members since we started has been $3.86. This means that if you have some members making average or above purchases, you will earn even more. With this limited size commission matrix, the maximum number of members you can earn commission on at any one time is 29,523. Because of the limitation on each level, when a level becomes full, the extra sales will spill down to the next level to the first open slot. You can actually end up earning commission from the sales made by sponsors ABOVE you as well as from those below you. BUILDING DOWNLINES Take a look at the diagrams below. Let's say your sponsor signed YOU, BILL, and JOE on his first level. Ú--------------¿ ³ Your Sponsor ³ À-------Â------Ù ³ Ú--------------------Å---------------------¿ Your Ú--Á--¿ Ú---Á--¿ Ú--Á--¿ Sponsor's 1st level ³ YOU ³ ³ BILL ³ ³ JOE ³ À-----Ù À------Ù À-----Ù Then before you got around to sponsoring anyone, your sponsor (or a sponsor above him) signed up ANN and TOM. We process orders in the exact sequence that we receive them. Our computer will automatically credit the sale to the sponsor listed on the order form. New members are positioned into the sponsoring members matrix by starting at the sponsors 1st position (top row of his/her matrix) then by moving from top to bottom and left to right, the computer will find the first open position for the new member. In our example your sponsor's 1st level (limited to 3 members) is full, so ANN and TOM would spill down into your sponsor's 2nd level which is your 1st. Ú--------------¿ ³ Your Sponsor ³ À-------Â------Ù ³ Ú--------------------Å---------------------¿ Your Ú--Á--¿ Ú---Á--¿ Ú--Á--¿ Sponsor's 1st level ³ YOU ³ ³ BILL ³ ³ JOE ³ À--Â--Ù À---Â--Ù À--Â--Ù Ú-----Å-----¿ Ú-----Å-----¿ Ú-----Å-----¿ Ú-Á-¿ Ú-Á-¿ Your 1st level ³ANN³ ³TOM³ À---Ù À---Ù When YOU sponsor your first three members (as indicated below) two of them would spill down to your 2nd level which is also ANN's 1st level. Ú--------------¿ ³ Your Sponsor ³ À-------Â------Ù ³ Ú-----------------------Å---------------¿ Your Ú--Á--¿ Ú---Á--¿ Ú--Á--¿ Sponsor's 1st level ³ YOU ³ ³ BILL ³ ³ JOE ³ À--Â--Ù À---Â--Ù À--Â--Ù Ú-------Å--------¿ Ú-----Å-----¿ Ú-Á-¿ Ú-Á-¿ Ú---Á----¿ Your 1st level ³ANN³ ³TOM³ ³1st sale³ À-Â-Ù À---Ù À--------Ù Ú-----Å-----¿ Ú--Á-¿ Ú-Á--¿ Your 2nd ³ 2nd³ ³3rd ³ Level ³sale³ ³sale³ À----Ù À----Ù This chain reaction effect means that you could be very pleasantly surprised when your first commission check arrives and you discover that even though you have only signed a handful of members, someone in the matrix above you has signed more than 3 members and the extra sales have ended up in your matrix. All you need to do is find three people who want to save money on quality ShareWare for their computers. How hard can that be? There is a bit more to it than just finding three people. You must be willing to help your sponsored members with questions about the use of the ShareWare catalog and/or sponsoring new members. After we receive an order, we will process it and ship the program disks directly to the member. You never have to worry about stocking inventory or collecting money. At the end of each month we send you copies of all sales orders processed under your MRN for that month. So that you can keep track of who's doing what in your matrix, we offer complete genealogy reports to sponsors (see the file REPORT.TXT on the ASC disk). The report will provide you with the name, address, purchase amount and expiration date for all of the members in your matrix. We want you to succeed, after all, if you make money, we make money. We offer a wide variety of programs and promotional material to help you along the way. In the Business section of the ASC disk, you will find what we call PRO- PAKS. They contain promotional material to help you sell memberships and programs. PRO-PAKS can be ordered with or without prospect names. The prospect names used with our PRO-PAKS come from responses to our advertising efforts. Perhaps this is how you learned about us. The PRO-PAKS will come to you in pre-addressed envelopes ready for you to inspect and send out. The sponsor's MRN# is specially coded and will appear on all sales orders generated by your disks. This will allow you to evaluate the effectiveness of the PRO-PAKS for yourself. We also offer high quality PRE-FORMATTED diskettes, labels, mailing supplies and other items to help you get started in this exciting and profitable business. All new members orders and sponsors agreements are entered and computer positioned in the exact order they are received. So the sooner you decide to become a member and a sponsor, the better your chances will be to have spill over sales from sponsors above you, end up in commission slots in YOUR matrix. Many of our members have hundreds, even thousands of dollars in commissions coming but they have never sponsored a member. We calculate and mail commission statements and checks on or before the last day of the month after the month in which the orders are received. The guidelines for computing sponsors commissions are as follows: 1. The computer checks to see that the sponsor has at least three personally sponsored active members in his/her matrix. If not, the program moves on the next sponsor. 2. If the three qualifying spawns were found the program will continue adding up the sales for all nine levels. Your commission statement will indicate the amount of sales on each level, total commission being paid for the period and the total commission earned to date. Commissions due for amounts less than $10 will be carried over to the next period. A 2% accounting fee will be deducted from all commission checks. Sponsors earning more than $600 in the calendar year will receive a form 1099 for use in computing taxes owed. Obviously we can not and will not guarantee any certain level of income to those who participate in our marketing program. What you can earn will depend mostly on the amount of effort you are willing to put into it. There is no minimum purchase required of sponsors or members, however, you must be a member in order to sponsor others and you must maintain your membership in good standing to retain your established position in the matrix. To sign up as a sponsor, you must sign and return one copy of the sponsors agreement to Matrix SoftWare. It is best to include the agreement with your initial membership order. If you send it in later, please write "CURRENT MEMBER" on the form. You will be given the opportunity to print the agreement after reading the marketing information section of the ASC disk. All ASC club members are assigned a unique members record number (MRN). Your membership disk will contain this number in the SPONSOR.DAT file. When orders are processed with your name and MRN on the order form, you will automatically receive credit for the sale. As many of our sponsors have already discovered, this program works if you do and the reward is well worth the effort. Thank you again for your interest, we look forward to helping you meet your financial goals. MATRIX SOFTWARE MARKETING CO. P.O. BOX 3858 LAWRENCE, KS 66046-0858 (913) 841-0121 (Voice or FAX) - - - - PRESS TO RETURN - - - -