How does Binary MLM Plan work ?

 How does Binary MLM Plan work ?

Binary Multilevel Marketing Compensation plan

Binary MLM is a unique business strategy used by a lot of Networking marketing companies. As the name suggests, Binary MLM is based around the number 2. The distributor plan in a binary MLM looks similar to a binary tree. A distributor would introduce 2 new members (Front line distributors). These 2 new distributors would then, hire 2 distributors each and so on.

A typical Binary MLM distributor plan looks something like this:

 

The distributor A for the MLM company using Binary plan would hire 2 distributors B and C who are his Front line Distributors. Now the distributors B and C, would then hire D, E, F and G who would be the down line distributors of A. This process would continue and the new distributors would join. Theoretically, it can go up to infinity as more and more distributors join. This is a 2-by-infinity matrix plan.

The two people they sponsor may not always end up on the same level. Someone above you may have had to place someone they have sponsored in that position, since their front two positions were filled or because they keep sponsoring others as they build their sales organization.

In a binary MLM plan, each distributor would have only 2 front line distributors. Suppose, A hires 3 distributors B, C and D. He makes B and C as his front line distributors. Now, D who is hired by A cannot be his front line distributor as the front two positions were filled. He can choose to place him below B or C. As a distributors keep hiring ( or sponsoring) new distributors, they may not end up in the same level ( as front line distributors). This is called Spillover

It might also happen that, both your sponsors might not end being your Front line distributors because some distributor above you may had to place the new distributor that hired in that position as he keep hiring new distributors to build the sales network.

Structure of Binary MLM

The binary tree consists of 2 sub-trees, one is referred to as Power-leg and while the second sub-tree is called the Profit-leg.

Power leg

As the new distributors sign up, they will be automatically placed in the distributor’s power leg. The power leg structure will have automatic placement of new distributors. As the number of front line distributors is limited to 2, any new sponsors would be placed in the distributor’s down line power leg (Spillover).

Profit leg

Profit Leg does not support spillover. All the distributors in the profit leg are personally hired( or sponsored) by their immediate distributor As the new distributors sign up, they will be automatically placed in the distributor’s power leg.

I hope you find this basic tutorial on Binary Plan useful. In the next tutorial, we will be discussing about the compensation plan in Binary MLM. If you have any doubts, please leave a message or contact us.

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Advantages of E-commerce

By selling online, you are ensuring that you can reach thousands of people with a single listing. Most of the owner sites have high search engine ratings, so you are likely to reach large numbers of buyers while being able to tailor your information to suit your particular needs and desired market.

Selling online is a great chance to enhance your presence and reach more customers. 70% people now days are using the internet and preferred shop online and don’t want to take bother of on roads traffic and rush in the market. These online markets use E-commerce software for all purpose of selling and buying.

The most important advantages to using E-Commerce are the reduced costs, reduce time so that you do not have to go market or mall to purchase things or products and you can utilize your spare time. The need to pay for lighting, staffing, and restocking a store is practically eliminated. This results in fewer employees and smaller facilities which in turn allows for larger capital gains. Single company head-office is needed along with a few warehouses that can cover larger areas than a single retail store normally would. More individuals can be reached through a website rather than the small geographical area that a retail store would cover. Retailers are required to cover larger geographical areas, but now with E-Commerce, anyone anywhere can access the website at any time and reduce their time of cost and increases the possible amount of customers dramatically.

E-commerce Websites also allow people to view companies’ products in their retail store. More of times people have gone to the store for a specific item when they disappointed that it wasn't in stock. With E-Commerce online store this doesn't happen. The facility provided, time saved, and money saved can easily increase the contentment of the consumer. By using E-Commerce website, a business remains open every hour of the year and acquirable to everyone across the globe.

There are types of E-commerce business model in the market, (B2C) Business-to-Consumer, C2C (Consumer-to-Consumer), B2B (Business-to-Business model) and B2G (Business-to-Government). It is necessary to be familiar with what each model contains. If you are running business selling and buying, then B2C model help in your business. Where transaction conducted between company and customers. Customers are end-user of its products or services.

B2B e-commerce is simply business-to-business commercial transactions that are conducted online. B2B model exists between businesses such as those involving a manufacturer and wholesaler, or a wholesaler and a retailer.

In B2C electronics commerce where consumers sell and buy old or new products, or trade products or services from one another through a third party website. Some most popular C2C e-commerce website (Quikr, OLX) are allowed either free or paid service as long as the transaction is among consumers.

B2G also called e-government. It refers to businesses and government agencies using the government website to mutually exchange information and trade with each other more efficiently. B2G model provides a platform for businesses to bid online, an organisation can get the information about business rules, permissions, requirements needed for starting for new business. 

Omega software’s is a leading E-commerce Website Development Company, being in this Website design & development field, we aim to provide small scale business their e-commerce store with advanced features. An online store we built is always equipped with responsive website design so you need not look for a mobile version of a website specifically. Design adjusts perfectly accordingly to every mobile platform your customer uses. You can get the best estimation of your E-commerce project @ info@omega-sys.com