MLM Binary Plan

One of the most popular MLM Business Plan in market

*Note: We can provide MLM Software as per your requirements

In Network Marketing, Binary Plan is one of the most welcomed and loved compensation plan by MLM Leaders and MLM Companies. MLM Binary Plan has its own reasons for being accepted and being loved widely amongst MLM Industry.

But as we know, MLM Software is one most essential thing for any MLM Company. So before going deep into or learning more about MLM BINARY PLAN, let’s get a little idea about MLM SOFTWARE.

MLM Software can be considered as a heart or fuel of any MLM company or MLM industry. It manages business data and provides ease in repetitive but important tasks of any MLM Company. If you are not much aware about MLM SOFTWARE, we recommend you to refer our post on MLM SOFTWARE here.

What is binary plan ?

In network marketing, Binary plan is one of the structured plan to distribute compensation to associates or members. It is most welcomed, most preferred and most loved plan amongst networkers. Unlike other plans, binary plan doesn't focus distributing compensation in members or associates on number of levels.

It focuses on distributing compensation amongst networkers based on specified sales volume. MLM or Network marketing company pays specified amount or percentage based on a specific volume of sales regardless of numbers of levels needed to achieve. And as the name of the plan, these specified volume of sales, to be achieved are distributed in two sided (binary), in ratio.

How it Works ?

Generally, in binary plan, there are two sides, one is left side and other is right side. In which, if ratio maintained, members get paid for volume of sales they create. Beside this, there will be compulsory initial qualification sales for members. These ratio can be 1:1, 2:1 or any other depending upon choice or structure of the company.

Let’s take an example to understand working of this plan easily. Suppose that there is a member of an MLM Company named “A”. This member will have two sides in his downline, right side and left side. Let’s say this company has qualification criteria of creating 2 sales in the ratio of 1:1, only after that member will receive his/her compensation for further sales created by his/her. Now suppose that, ratio for compensation is 2:1 , so after first 2 sales on which he/she qualifies, member will get his/her compensation on next 3 sales created directly by him/her or person in downline, 2 of them on either of the side and 1 is on the other side. After this, as per the distribution structure decided by company, member will get compensation on next volume of sales created in the ratio of 2:1 and so on.

Now as we can see, every member here will have only 2 sides. So each member will be able to sponsor only 2 persons directly. After first 2 person, if any member wants to sponsor someone, new sponsor will go in downline of someone who is in downline of the first person. This is called spill. In other words, it is also called "upline support"

If seen as a bigger picture, binary plan is also a matrix plan, in which matrix is 2 X infinity. Because everyone has 2 people on their first level, who also has 2-2 people on their respected first levels, giving four people on second level of the first person and so on, resulting into infinite levels. The only difference between matrix plan and binary plan.

Binary compensation plan is easy to understand for people and easy to explain it to others, too. And that is one of the reasons why binary plan is accepted widely and loved by networkers.

Advantages of Binary Plan

There are some advantages of binary plan as believed by networkers and because of which adopted widely by them. Here are some of these advantages.

The first and important advantage of binary plan is spill over. Because of spill over, members get people sponsored in their downline by upline. That is what networkers like about binary plan.

Second thing networkers like about binary plan is that they get paid on volume of specified sales instead of levels unlike other plans.

Third thing networkers love about binary plan is that they have to do only 2 self sponsored sales. After that, they will get spill overs from uplines as well as self sponsored sales of members in downline, for which they will also get paid. So technically they don’t have to do retail sales.

Fourth advantage of binary plan as believed by networkers is they get paid more often in binary system as compared to other plans

Disadvantages of Binary Plan

As every coin have two sides. Same way, though having advantages and widely used by networkers, binary plan also has some disadvantages. Below are the disadvantages of MLM Binary plan.

Some networkers believe that spill over is a disadvantage of binary plan. According to them, because of spill over, members start to expect sales in their downline from upline or from downline, which results into dependency of one member on another.

Some networkers believe that binary plans are all about making money fast. It doesn’t depend on products. And because of that, companies using binary plan doesn’t last long. And because of that belief or fact, networkers keep on switching from one binary plan to another.

One more disadvantage of Binary plan is technically called “Flush” or “Wash out”. In this, after getting paid for sales on weaker leg, remaining volume of sales on weaker leg of members get flushed or washed out. It means it is no longer available for member to earn commission upon.

Another disadvantage of binary plan is technically named as “cap”. In cap, after reaching on a specified percentage commission of sales volume created in network or downline, member will not get paid for sales exceeding than those sales. Because of cap, member won’t be able to earn more money than a limit. In a way, it is disadvantage for members but advantage for company.

How can we help ?

As we have seen, binary plan is mostly adopted plan amongst networkers and it have both advantages and disadvantages. So if you are planning to adopt binary plan, a very good MLM SOFTWARE is also required.

Being an experienced service provider in MLM INDUSTRY, we recommend ONLINE EDUCATION product which is perfect match with MLM BINARY PLAN and which has the potential to generate more profit than other MLM Products, so that you can distribute more commission to your distributors.

In addition of that, we can provide MLM SOFTWARE as per your need of MLM BINARY PLAN along with must have and high end features which guarantees flexible implementation of your neatly and nicely designed MLM BINARY PLAN to ensure success of your company and you.

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