MLM compensation plans are the ones
that determines the benefits that a network marketing company provides to its
customers. Binary
compensation plan is what that allows us to add only two people under the
sponsor’s downline. And the Matrix compensation plan is a little different from
this.
Understanding In Depth About Binary
MLM Plan & Forced Matrix MLM Plan
Binary MLM Compensation Plan
The major role of a compensation
plan is to deliver a portion (which can differ according to the network
marketing company you work for) of the profit or sales made to its distributors
or executives.
There are multiple compensation
plans in existence and it includes Binary, Matrix, Unilevel, Board Plan, Hybrid
MLM Plan and many more.
Calculation of payouts or other
bonuses to its members become more complex as the compensation plan varies. It
all should be done manually.
But installing an efficient MLM
software might help you in fixing such issues!
A Binary MLM Plan consists of
mainly two legs: a Left leg and a Right leg. A sponsor can only have an
immediate downline of only two people below him or her. Every new member will
be placed under the sponsor’s Left or Right Leg depending upon availability of
the space.
Bonuses that a distributor gets
under the Binary compensation plan are as follows:
• Sponsor
bonus
• Matching
bonus
Benefits of Binary MLM Plan
Ø You can
make returns from the success of your Upline.
Ø The payout
limit is unlimited.
Ø It works
more like a team game. The sponsors will be actively involved for the growth of
their downline.
Ø The upline
will be helping to build the other leg.
Matrix MLM Compensation Plan
A Matrix
MLM Plan has basically two parameters, it’s the width and the depth.
Generally, It is represented in the form “mxn”, where ‘m’ is the width of the
matrix and ‘n’ is the depth of the matrix. The mostly common Matrix Plans are
of the order 3×7, 4×7, 5×7, 3×9 and 2×12.
This plan provides you immense
earning possibilities as compared to the Binary MLM Plan.
It can be explained as, in a 4×7
Matrix Plan, you can add only 4 members as his immediate downline, and the
level can go up to 7 levels, which the compensation will be provided for.
Benefits of Matrix MLM Plan
Ø It provides
higher money earning opportunities.
Ø The Matrix
Plan allows you to grow unlimitedly or rapidly, which mostly the other
compensation plans do not allow. earning income of you will be increasing as
the number of new members also grow.
Ø Here, once
you have filled your frontline distributors, then you can shift your focus to
other areas like developing your front line executives into the posts of higher
priority like leaders or more.
Binary Vs Matrix MLM Compensation Plan
Pay: Matrix MLM Plan pays more in comparison to Binary MLM
Plan.
Implementation: Since the Binary
MLM plan involves bilevel distribution of members, implementation is quite
easier than the Matrix MLM plan.
Downline expansion: Downline expansion is easier in case of Binary MLM
plan due to the Binary layout.
Downline structure: The down line structure of Binary MLM plan is
different to that of Matrix MLM plan. Matrix MLM plan consists of multiple legs
in which members are placed according to the parameters (width and height).
Downline Matching: Downline matching is not essential in case of Binary
MLM plan whereas it is essential in the case of Matrix MLM plan.
Downline recruitment: In case of Binary MLM plan, a sponsor cannot influence
the downline recruitment since the concept is that of Binary.Since the Matrix
MLM plan has the concept of spillover, a sponsor can influence the downline
recruitment to an extent.
Teamwork: Matrix MLM Plan is dependent on the teamwork of the
entire network while this does not influence the Binary MLM Plan.
Thank you for reading our content.
For further details, kindly visit our website mentioned below;
MLM software Malaysia
289 Old Klang road,
Kuala Lumpur 58100
Wilayah Persekutuan
+60164998736
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