Binary vs Generation MLM Compensation Plan-mlm software tamilnadu
What is Binary Plan?
Here in this plan, it is
two-legged structure one is right leg and the other is a left leg in
the MLM
structure.
Each distributor will be able to recruit only two members and the two
members, in turn, will be able to recruit another two members in the
right and the leg of the MLM structure. This is how the structure
goes in Multi-levels of this business.
What is Generation plan?
The generation
plan
is an MLM plan which is based completely on product selling and
profit-sharing of the marketing business.
Comparison of Binary Vs
Generation MLM Compensation Plan
Structure:
1.The structure is perfect
with two legs as left and right leg of binary whereas here in
generation plan, the number of downlines does not restrict width as
well as depth-wise.
2. In binary structure, the
depth is unlimited whereas in generation plan both width and depth is
unlimited.
3. There is spillover in
binary structure whereas there is no spillover in a generation plan.
4. The binary structure looks
simple with two legs of downlines and spillover will always fall
under the power leg but the structure of the generation plan involves
an infinite number of downlines depth and width-wise for a
distributor and forms the generation levels.
5. In Binary, there is no need
for a separate group of generations as the structure is perfect.
Whereas in Generation MLM plan, the structure is completely from
product selling and generations of the group of downlines are from
the MLM company.
6. Binary plan is a
volume-driven plan, whereas generation plan is a sales-driven plan.
7. The binary plan expands
very fast as it needs to recruit only two downlines for a member.
whereas in a generation plan, there is no limit for downlines.
Commission Calculation:
2. In Binary MLM Plan, the
commission is based on business volume points earned by the downlines
and not by the levels of downline but as there are generations in
generation plan, the commission offered is based on the levels of a
generation.
3. In Binary MLM plan each
member earns a commission based on a certain percentage of downline’s
business volume. In generation MLM plan the commission is calculation
is by profit-sharing in the generation at each level.
4. In Binary, there is no
level commission and commission will not decrease with increasing
levels. In Generation plan, the commission decreases as the level of
generation increase. For example at the first level the members may
get 10%, second level 6%, third level 4% and so on.
5. In Binary plan the earning
benefits are not the same. Whereas, all the members in the generation
plan at each generation level will have the same earning benefits.
Rank:
1.Binary MLM plan is structure
is in such a way that the rank of the member depends upon the
position of a member in the network. Whereas In a generation plan,
the rank of similar or different rank people will be under each
generation level.
Bonus:
1.In Binary MLM Plan, there
are generally two types of bonuses i.e pairing bonus and sponsor
bonus involved. Here in Generation plan, it is based on target sale
and at the level of the generation.
Product Advertisement:
1. When compared to the
product advertisement in Binary plan, here Generation plan is mainly
based on product selling and so less advertisement is required.
Conclusion:
In this article, hope you will
be able to understand the benefits of binary and generation MLM plans
by analyzing the differences between them. It is important for any
MLM organization to analyze and customize the MLM plan to stay
profitable with their MLM business.
Similarly, the comparison of
Unilevel
vs Binary MLM Compensation Plan provides you more information about
the other two of the major MLM plans.
Thanks for watching our content to know more about our
services.Kindly visit our website:
MLM Software Tamilnadu
26, 49th Avenue, Ashok nagar,
Chennai – 600083,
9840566115
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