Network marketing binary system construction principle. Binary marketing (binary)

For this section to make any sense, we must first explain in a few minutes what takes most distributors hours to understand. What we're talking about is this: how exactly does the binary plan work?

In most binary plans you have what are called Entries or Business Centers, numbered 001, 002 and 003. Typically the distributor can initially pay for up to 3 business centers to receive a fixed amount of money, always returned by the product. 001 is the top center, 002 is built from it down to the left and 003 is built down to the right. From each of them you have two “legs”. 001 left and 001 right. 002 left and 002 right. 003 left and 003 right.

If you start with just center 001, you will only have two legs. 001 left and 001 right, which represent two distributors recruited by you personally. If you start with all three centers, 002 and 003 are actually two additional personal legs of your 001 center and from 002 and 003 you will have two legs from each of them that can be filled with 4 new distributors. As a result, you have two “sides” and two “legs” on each side from which you begin to build your organization from your 002 and 003 centers.

Sales volume (usually wholesale) is accumulated on each side, and at the end of each week (not month), the accumulated level of volume in each leg of each side is compared. If the weak side leg (with lower volume) reaches a certain commission level of sales volume, then you receive a bonus check based on the sales volume achieved on the weak side. So the legs on the weak side are key factor to receive commissions. Think of it as two cylinders filled with liquid (which represents sales volume).

The picture below shows four legs on two sides that allow you to earn commissions from $200 to $800, accumulating $1,000 to $4,000 in volume on each side.

In this example, over the course of a week you have accumulated a volume of $1,000 on one side (total volume of legs 002L and 002R) and $2,500 on the other (003L and 003R). You will receive 10% or $200 on your 001 center based on the volume accumulated on the weak side ($1,000).

Important note: Typically, no matter how many centers you may initially purchase, you only receive commissions on your 001 center until you reach the maximum commissions for that center. Once you reach the maximum commissions on your 001 center in one commission period (one week) with $8,000 in volume ($4,000 per side), it will automatically activate your 002 and 003 centers, preparing you to earn commissions on them. This forces you to focus on building two symmetrical legs ($4000 each) in the centers 002 and 003. If you reach $4,000 volumes in all legs (001 L&R, 002 L&R, 003 L&R) you reach the enviable position of maximizing this plan with commissions for one week without taking into account repeated entries.

One of the main considerations and differences is what the company actually does with that remaining $1,500 on strong side(for which you are not paid a commission in the example above). Most carry this amount over to the next week. Some “reset” this volume and it is lost. Some will dump “excess” volume only if it exceeds a certain level, say $4,000 for example. If the plan has low level reset, you may not receive commissions on a significant portion of the volume flowing through your organization.

Well, the roof hasn't fallen off? That's not all! Another thing that makes things even more confusing is that most binary plans allow re-entry into their own lower level. You see, each new entry creates a position that is not always adequate to the position you occupy and maintain with monthly purchases, as in other MLM plans. In some binary plans, every time you order products for a certain amount, you can create a new entry position located in the structure below the main one. When calculating volume and commissions, note that there is no difference between levels. They exist, but whether the sale occurs on your first or thousandth level, it is completely the same for your volume for this leg. This is a realistic strategy for making your legs as symmetrical as possible, especially in hard drop plans.

One of the most easily debunked “benefits” of the binary plan is the claim to receive commissions from an infinite number of levels in depth. Let's dispel this myth first. Let's say you have a leg extending 1,000 levels deep (note that in principle one person could create many entries and centers). Let's say $100 is the volume set by the company at your thousandth level. O'key, the fact that this hundred bucks will be included in your volume, in this leg, is true. But is it included in the scope of one of your first-level centers? And wouldn’t this sale fall within the scope of one of the first-level positions of this center? In fact, wouldn't there be potentially a thousand more entry positions that would also be eligible for their share of the commission on that sale?

Indeed, it is very doubtful that all thousand positions would be eligible for commissions. Many may not be qualified, many may be “dead” positions (in some binary plans, entry positions may be stopped once they have earned maximum commissions). Let's assume that out of a thousand, only 200 positions qualified to claim their share of the commission on that $100, which we would very optimistically estimate to be 50% or $50. And even if those 50 bucks were split equally between those two hundred positions (which never happens, as you'll soon discover), you could earn as much as 25 cents of that $100 at your 1,000 level. But here's the real blow! Remember our example where you, with a thousand dollars in each leg, receive a check for $200.00? Does this mean that in the total volume one of your sponsor's legs will be $2,000? Wouldn't that $200.00 first form half of his/her commission on your volume? If you are still able to continue (it's not our fault if you are already confused, we have the same problem, although we wrote this text ourselves), then you will see that one quarter of your sponsor's $200.00 commission is also taken from your volume.

In Russian, this simply means that at any given point the percentage of commission on each sale is halved as the depth level at which it is made increases. Now let's take a look at our $100.00 purchase made at the 1,000 level, for which the company pays 50% commission. In addition, we have assumed that only 200 positions between you and this sale are qualified to each take their share of the commission. Even if we assume that the direct sponsor of the position in which this sale was made will receive $25 from the generous company (which is half of what the company plans to pay to the network in the end), then, decreasing all the way to you (200 times ) doubled with each position, a completely insignificant amount will reach you, which is difficult to name right away. We got to 0.00000001 cents after dividing $25 by two 42 times and then there wasn't enough room on the calculator for more zeros.

So does the binary plan really “pay” indefinitely? Can any number, no matter how small, be divided by two? The answer to the second question is yes, therefore, the answer to the first is theoretically also yes. However, having accepted that we are not interested in fractions of a cent, for all intents and purposes, the Binary plan actually pays down 10-15 levels, just like some other compensation plans, and even some Single-Level and Matrix.

Another “strong” argument of binary plans is that your sponsor can become your distributor. This is of course possible, as in any other plan that allows the opportunity to enter the business a second time at your own lower level.

Let's say you long time have strong competitor seven levels above you. As he/she continues to repurchase the product and create more and more inbound items, they move to the lower levels. Will one of them fall under you? Let's get a look. The number of positions doubles down seven levels, which should mean you're just one of 128 possible recipients of such a freebie - less than a 1% chance. What if you were lucky enough to be in his/her strong position? Forget about it. It is most likely that the weak leg will be filled to help it achieve a volume similar to the strong leg.

Could this secondary entry work against you? What if you are the first line of a strong recruiter and catch such handouts from above? One day he/she earns a new position and starts doing it on the other leg from you. As they build under this new position, will there now be less attention to the position under you?

Another misconception is that binary plans simply pay more. One company even ran ads claiming that their Binary Plan paid “six times” more than a typical Step-Separation Plan. Think about this. Most "Step-to-Separation Point" or any other type of plan actually pays somewhere around 30-45 cents for every dollar of wholesale volume. Let's take an average of 40%. So this Binary Plan pays $2.40 (6x0.40) for every dollar of wholesale volume received? I hope not. That would just be giving away free dollars.

What about this claim: “Binary plans do not have group qualifying volumes”? In our example, how much should you receive in commission if you have less than a thousand dollars in each leg? Nothing, at least for the first week, if this volume accumulates. This sounds a lot like group qualifying volumes.

We do not want to trash the plan itself here, since there may be specific implementations that differ significantly from the typical example given. We feel, however, that whatever benefits it offers may be outweighed by the conditions put in place by companies along the way to obtaining them. Binary plans can be much simpler structurally than other types of plans. But it is the type of plan that requires the most understanding of how it works. There are many strategies for building a Binary structure to optimally realize its benefits.

Binary plans are designed to create the perception of certain benefits that they don't actually have, at least in reality (paying forever, commissions six times higher than other plans, huge freebies sprinkled on top, etc.). P.). In fact, the same 40-45% of volume can be accomplished just as easily with any other form of plan.

A binary plan is simply another type of compensation plan. This is by no means a scam designed to dupe and siphon money out of hapless victims by a bunch of "star" distributors, like the Australian Schemes, for example, but it is also not the revolutionary coup, God's gift to the MLM Industry, as it is usually touted. However, we think it has potential. But Binary plans give a lot of failures. In other words, large amounts of unpaid commissions may be retained by the company. As more and more companies begin to plug the cracks through which unpaid volume can leak, Binary plans continue to grow in popularity, appealing with their “benefits.” The only thing that could stop the impending Binary Boom is the scrutiny it is now receiving, thanks to all the crazy, industry-defaming companies that have a purely symbolic product, which are actually thinly disguised financial pyramids that most often choose this one type of compensation plan. His reputation undoubtedly suffers from this association.

Binary plans offer good base to build a simple, replicable networking system: recruit just two (one 002 and one 003) and then commit 100% to helping them do the same. If one side is weaker, sponsor more people in the weakest leg. That's all true.

Despite its image, Binary Plans are very much focused on group volume purchases of a product. And volume products sold- this is what people really make money on - not on levels, percentages, or other fancy names, but on volumes.

Some points to consider:
Some other points that should be considered before committing yourself to a Binary Compensation Plan.

1. How much does each Entry/Business Center cost? This may be presented in a disguised form. Let's say $200 for the Center. If you activate all the centers, then you need to talk about investing $600. Maybe, the best solution You can start with one center and your other two will automatically be activated when you reach the maximum commissions with the first center and you have the money to pay for the other two.
2. What interest is paid and what are the limits on the amount required? Many of the Binary plans we have reviewed pay 5-10% up to a maximum (balancing) amount of $10,000. The balancing volume for earning commissions usually goes like this: $1000, $2000, $3000, $4000 and $5000 per side. However, some new variations of this plan lower the minimum volume on the weak side on which you can earn commissions.
3. Are there any additional ways to earn money? Most of the existing binary plans have no other ways to make money. However, some new Binary plans are starting to add additional bonuses, for example, for personal recruitment, and also create from profits bonus fund to encourage top leaders. This gives them additional competitiveness.

A concept updated in the context of postmodern criticism of the classical type of rationality and fixing the foundation of Western mentality by dual semantic-structural (and, accordingly, semantic-axiological) oppositions: subject - object, West - East, external - internal, male - female, etc. According to a postmodernist retrospective, "in classical philosophical oppositions we are not dealing with a peaceful coexistence vis-a-vis, but rather with a violent hierarchy. One of the two terms leads the other (axiologically, logically, etc.) or has superiority" ( Derrida). E. Jerdain evaluates the “Great Dichotomies” of traditional metaphysics as constituting a “semantic space of oppression”; similarly, E. Wilden notes that those who are “on the right side” of the great “Imaginary Line” are practically in a position of total suppression of everything that is “on the other side” with impunity. In contrast, postmodern culture, according to the reflexive assessment of postmodern philosophy, is focused on the fundamental removal of the very idea of ​​rigidly linear opposition, excluding the possibility of B. as such. Thus, the binary oppositions traditional for European culture cease to serve as load-bearing axes organizing the mental space. The classical oppositions of the Western tradition are being replaced by a paradigmatic focus on the immanentism of the interpenetration of what in classical culture was interpreted as opposites (according to Derrida’s formulation, “to deconstruct an opposition means, first of all, to immediately overthrow the hierarchy”): the removal of subject-object opposition in the paradigmatic focus on “death of the subject” and the concept of simulation, elimination of the opposition between external and internal in nomadology (see Flatness, Rhizome) and in the concept of fold (see Fold, Folding), rejection of the opposition between male and female in the context of the concept of temptation, etc. Derrida explicitly proposes an interpretation of the “chora” as a phenomenon of the removal of the “oscillatory operations” of B. We are not talking, however, about a simple negation in relation to the mental gestalts based on the idea of ​​B., but about the meaningful overcoming of the binaristic paradigmatic figure as such. As Derrida writes, " overall strategy deconstruction... should probably try to avoid a simple neutralization of the binary oppositions of metaphysics and, at the same time, a simple rooting in the locked space of its oppositions, agreement with them,” in this context it is necessary what Derrida calls “putting forward a double gesture.” Similar the gesture is that “Derridean deconstruction, imagining a system of traditional binary oppositions in which a left-handed term claims a privileged position, denying the claim to the same position on the part of the right-handed term on which it depends ... is not to swap the values ​​of the binary opposition, but rather to disrupt or destroy their opposition, relativizing their relations" (A. Easthope). The central aspect of postmodernist criticism of B. is the refusal of the philosophy of postmodernism to articulate its problematics in the context of subject-object opposition. The most important The paradigmatic presumption of the postmodernist type of philosophizing is the presumption of refusal to interpret subject-object relations as a rigid opposition, while within the framework of classical culture it was constituted as a supporting semantic axis: the figure of opposition between subject and object was fundamental for both classical science with its well-known principle Midas (everything that scientific knowledge touches becomes an object), and for the classical type of philosophizing with its intention for reflexive consideration, among its functions, the worldview function and, accordingly, for the subject-object articulation of its subject. This installation is typical specifically for a Western-type culture with its characteristic way of understanding the structure of activity, which presupposes a semantic and axiological emphasis on the subjective component of activity: the agent of activity, his knowledge of programs of activity operations and the goal-setting block. This orientation genetically goes back to the tradition of ancient Greece as based on craft production (the master as “demiourgos” - “creator of a thing”) with its cultural pathos of transformation (characteristically, for example, that when building a road they did not go around the mountain, but cut through it or made steps ). An act of activity is articulated in this context as an action of a subject aimed at an object. (Indicative in this regard is the logical system of Aristotle, on the one hand, which differentiates the target, active and formal causes, which actually represent the subjective block of an activity act; on the other hand, it only designates the object-subject block as such, fixing the general material cause.) In contrast to Therefore, traditional Eastern culture is characterized by an emphasis on the object-subject component of activity (the subject of activity, which turns into a corresponding product during the transformation of its properties when interacting with the tools of activity). This is due to the fact that traditional culture is based on an agrarian type of management, which initially presupposes not only and not so much active human intervention in the process, but rather an orientation towards the use of a spontaneously emerging product (indicative in this regard is the ancient Chinese parable about a man pulling grains from the ground, rushing their height). - The activity act is articulated in this case as a spontaneous process of changing an object, in relation to which the subject is thought of as immanently included. This type of culture actualizes radically different value systems than the culture of Western activism. A typical example In this regard, the axiological presumptions of the Taoist principle of non-action, radically alternative presumptions of an active life position as a normative requirement of classical ancient ethics, can serve in this regard (police law in the time of Solon provided for the deprivation of civil rights of those who, during street riots, did not determine their position with arms in hand). But if the classical stage of development of the European cultural tradition passed under the sign of subject-object biology, then the formation in its context of non-classical science and non-classical philosophy was marked in the context of European culture by the intention to destroy the rigid opposition between subject and object - as in the context of the natural science cognitive tradition (constitution methodology of the Copenhagen School, based on a radical rejection of the idea of ​​an external position of the subject in relation to the instrumental situation), and in the context of the philosophical tradition: the well-known “crisis of ontology” of the 20th century, largely inspired by positivism with its idea of ​​“ontological relativism” and ultimately leading to the existentialization of ontological problems: the articulation of Dasein by Heidegger, the “experience of phenomenological ontology” by Sartre, the interpretation of “being open to understanding” as the “I” by Gadamer and others. The classical subject-object opposition begins to be subject to explicit criticism - both from the natural science vector of culture , and from the philosophical side. The artificial, typical for the Western type of rationality, gap between the objective world and the world of the subject is assessed as detrimental, first of all, for a person whose existence turns out to be existence in a totally dehumanized world: as J. Monod, a well-known representative of modern natural science, writes about the union of subject and object, "the ancient union is destroyed. Man... realizes his loneliness in the indifferent vastness of the Universe." The focus of criticism of the existing (subject-object) type of rationality falls, first of all, on the fact that within its framework a person either loses his subjective qualities, acting functionally as an object of study, or reduces them to narrowly pragmatically articulated ones, i.e., again however, he loses by acting as a subject of activity to transform an object that interests him solely from the point of view of possible conquest. In this sense, the development of the classical type of rationality is assessed by philosophy of a non-classical type (Heidegger, modern philosophy of technology in its anti-technical vector of development: Mumford, F. Rapp, H. Schelsky, etc.) as a threat to the human in man. According to A Koyre, the world of classical culture is a world “in which, although it contains everything, there is no place for man.” The negative consequences of this split of the world “into two alien to each other” are also articulated in ecological and epistemological terms: objective relativism results in cognitive relativism - “the existence of two worlds means the existence of two truths; however, another interpretation is not excluded - truth in general does not exist" (A. Koyre). In the context of the postmodern philosophical paradigm, the destruction of the classical subject-object opposition, which determined the objectivity and specificity of philosophy as a conceptual system, is based on the initial postmodern rejection of the very idea of ​​semantic-structural oppositions. The space of the text is defined by postmodernism as the space where the subject and the object are initially dissolved in each other: a person as a bearer of cultural languages ​​(semiotic codes) is immersed in a linguistic (textual) environment. “The stage space of the text,” writes R. Barthes, “is devoid of a ramp: there is no active subject (author) hiding behind the text, and there is no object (reader) in front of it; subject and object are absent here. The text crushes grammatical relations: the text - this is that indivisible eye of which one enthusiastic author (Angelus Silesius) says: “the eye with which I look at God is the same eye with which he looks at me.” In fact, in the postmodern frame of reference, the concepts of subject and object can be constituted only in speculative and one-sided conceptual sections of the situation of textual semiotic totality. However, the destruction of the subject-object opposition in the context of the postmodern type of philosophizing is far from being limited to its collapse - it is much deeper and implies the loss of the status of possibility for all components of this opposition, i.e. . fundamental splitting of the certainty of both the object (objectivity as such) and the subject, the “I” (the paradigmatic figure of the “death of the subject”). Basic for postmodernism, the criticism of the referential concept of a sign (see Empty Sign) and the rejection of the very idea of ​​​​the possibility of an extra-textual signified (see Transcendental Signified) leads to the fact that the concept of “object” in its classical sense cannot, in principle, be constituted in the context of a postmodern type philosophizing. Accordingly, any attempt at such a constitution can result only in the simulation of an extra-sign phenomenon - that P. van den Heuvel designated it as a “stolen object.” It is no coincidence that postmodernism sees in the beginning of every (even - in retrospect - classical) text the supposed “word Esto (let, for example... suppose...)” (R. Barth). In the postmodern frame of reference, the only (and ultimate) version of objectivity is, in Kristeva's formulation, the “problematic procedural object” that “exists in the economy of discourse.” In such a context, the traditional foundations for the differentiation of natural science and humanitarian knowledge in the proper sense of the word are lost, and a clear demarcation of “sciences of nature” and “sciences of spirit” turns out to be impossible in principle. Lyotard designates this situation as “the decomposition of the principle of the legitimacy of knowledge”: “this decomposition occurs within speculative games, weakening the ties of the encyclopedic structure in which each science was supposed to take its place... Disciplines are disappearing, there is an interpenetration of sciences at their borders, which leads to emergence of new territories." Even within the subject field of philosophical knowledge, differentiation of the traditionally distinguished areas of ontology and philosophy of consciousness, philosophy of history and philosophy of culture is impossible. In this regard, Apel states in relation to modern philosophy removal of the “fundamental difference between classical ontology and new European philosophy of consciousness.” The final collapse of the subject-object opposition deprives the traditional dichotomy of the natural and human sciences of its substantive criterion [and this despite the fact that postmodernism’s affirmation of the narrative (see Narrative) nature of any knowledge deprives their differentiation of an intra-scientific basis]. In fact, as H.S. Schneidau writes, this means “the bankruptcy of the secular-humanitarian tradition” and focuses on a broad interdisciplinary dialogue - with the understanding of the latter as being realized not only and not so much between adjacent disciplines, but between the natural sciences and the humanities. (Similar trends can be recorded in modern natural science: thus, according to Toffler’s assessment, speaking of the synergetic research paradigm, it can be argued that “we have before us a daring attempt to put together what has been torn apart.”) Thus, postmodernism, taking shape , as Derrida puts it, “on the borders of philosophy,” carries within itself an integrating potential and a value orientation for interdisciplinary dialogue. In relation to the current state of affairs, it can be argued that if, within the framework of postmodern classics, the subject-object relationship dissolves in the processuality of the semiotic game, then within the framework of such a phenomenon as after-postmodernism, there is a tendency to constitute problematic fields of philosophizing in the context of understanding relationships articulated as subject-subjective. In fact, in the context of the modern version of postmodernism, the traditional subject-object opposition is destroyed to the ground - up to the destruction of the concepts of subject and object in their classical reading - and in its place the processuality of spontaneous subject-subject relations is put forward. In general, according to R. Ruiter’s assessment, postmodernism’s rejection of the presumption of B. entails radical interpretative transformations of the cultural space as a whole, including a new vision of theological issues and a rethinking of anthropo-natural relations constituted in a given culture as the dominance of man over nature, because “the entire Western theological tradition of the hierarchical sequence of existence... begins with the immaterial spirit (God) - the source of this sequence and descends to non-spiritual matter” (see Idealism). (See "Resurrection of the Subject", After-postmodernism.)

Binarism – Philosophical Dictionary

English BINARISM, French. BINARISME, German. BINARISMUS. As is known, traditional structuralism was based on the principle of opposition, sometimes interpreted as the theory of binarism, according to which all relations between signs are reducible to binary structures, that is, to a model based on the presence or absence of a sign. As the West German researcher R. Holenstein once wrote, “from the point of view of structuralism, opposition is the main driving principle both methodologically and objectively” (Holenstein: 1975, p. 47). In the theory of structuralism, binarism has turned from a private technique into a fundamental category, into the essential principle of nature and art. The point of poststructuralist criticism of structuralism is to destroy the doctrine of binarism. This is achieved in two ways: either by purely logical postulation of a multitude of transitional positions, which Greimas began to do within the framework of the structuralist doctrine itself, or - and this path was chosen by the majority of poststructuralists - by proving the presence of so many numerous differences that behave in their relationship with each other so chaotic that they exclude any possibility of clearly organized opposition. Chaos can only be resisted by order (or some kind of orderliness). When the existence of only disordered chaos is postulated, then, naturally, there is no room left for a clear opposition of one to the other. As a result, the differences themselves cease to be perceived as such. Deleuze and Guattari prove something similar in their book Difference and Repetition (Deleuze, Guattari: 1968). He tried, like his poststructuralist colleagues, to rethink the concept of “difference” (or “distinction”), “freeing” it from the classical categories of identity, similarity, analogy and opposition; in this case, the initial postulate is the conviction that differences - even metaphysically - are not reducible to something identical, but are only correlated with each other. In other words, there is no criterion, measure, standard that would allow one to objectively determine the “magnitude” of the “difference” or “difference” of one phenomenon from another. All of them, in contrast to the strictly hierarchical system postulated by structuralism, form in relation to each other a decentered, moving grid, characterized by “nomadic distribution”. Therefore, there can be no talk of any universal code, to which, according to the structuralists, all semiotic and, therefore, life systems were subject, but only of “formless chaos” (Deleuze. Guattari: 1968. p. 356).

Which is not a business at all 🙂 and I was faced with the fact that there is no normal explanation on the Internet of what a binary marketing plan is. We will close this gap. I’ll try to sort everything out with numbers and diagrams. In general, I noticed that MLM workers have picked up many different clever terms for themselves, and often they take on a completely different meaning than their original meaning. The same duplication, for example, in biology refers to the process of doubling sections of a chromosome. In MLM, this term refers to the principle of expanding the structure, which involves repeating your actions by your distributors. But let's return to our ram binaries :-).

Binary Marketing Plan(binary, bi-marketing, binary) - is a network structure in which you build only two branches, and payments come to you from the entire turnover of the structure, regardless of its depth. Typically you need to make 1-2 personal invitations to each of the two branches to qualify. And then your invitees will build the next level of 4 people.

If you invite a third person, he will be considered your personal invitee, but at the same time he will go down through the level below into an empty cell of one of your distributors. The same thing will happen with those invited from your sponsors, they will become under you. Just some kind of freebie? Of course, not everything is so simple, and later we will examine this point in more detail.

To qualify and receive bonuses, your entire structure must fulfill certain conditions for turnover, for example, make 4 sales, two in each branch. It is important to maintain a balance between branches, because if you have 4 sales in one and none in the other, you will not be paid anything. Often this ratio is set not 1:1, but 1:2, this option is easier to work with. For example, in the left branch you need to make sales for at least 1000 rubles, and in the right branch for 500 rubles, and in this case you will receive your bonus.

Key Benefits of Binary Marketing

• Only two branches. You only need to support two teams, it is easier than working with 5-10, as in linear marketing.
• Easy qualification. Usually you need to make at least 2 invitations. The purchase of goods occurs once; there are no obligatory periodic personal purchases.
• Overflows from sponsors. People invited by your leaders become part of your structure under you. But there is some peculiarity here. Overflow distributors move to a weak branch, so if you are a strong leader, you may not receive help from sponsors.
• Rapid growth structure. I wanted to write about the rapid growth of trade turnover, but the problem is that at the same time the costs of paying bonuses are growing rapidly.

I have run out of benefits from this type of marketing plan. Some figures name a few more points, but in fact they are not advantages, but disadvantages.

Disadvantages of Binary Marketing

• Binaries attract freeloaders. Many people come to such companies just to “ride on someone else’s back.” They have fulfilled the minimum qualifications and are waiting for their bonuses, which should be provided to them by other participants in the structure.
• Difficult to maintain branch balance. An active leader came under you, and your structure was distorted. You need to either become more active yourself, or look for a similar leader to compensate for the growth of the first one. It’s good if the cycles are cumulative. And if accounting is carried out only for a certain period, then you will not have time to complete the qualifications. You will not be paid bonuses, although your structure will actively develop. Empty volumes arise from which the company administration makes good money, not you.
• Payouts from endless levels. Many people take this as a plus, but in fact it is an element of a pyramid scheme, due to which the binary collapse occurs. We will now examine this point in detail.
• Difficult to understand for beginners. Often, binaries hide ordinary fraudulent schemes, which are banal financial pyramids. They often justify their collapse by errors in calculations. Like, binaries are difficult to calculate. They even say that binary plans appeared only in the 90s with the development computer equipment. This is a myth, I will show you the calculation of binary, which is done without a calculator :-).

Is a binary marketing plan a pyramid scheme?

Yes it is. This is due to payouts from endless levels. But if these levels are limited, then bi-marketing will lose all its advantages over traditional network marketing. In a linear marketing plan, the levels are strictly limited, and as the depth increases, the payout percentage drops down to zero. For example, in Oriflain’s marketing plan, levels are limited to 9, and as the depth increases, the payout percentage decreases. You can't get more than 30% from personal sales and more than 25% from group ones. This is the main difference between binary marketing and linear marketing.

With binary marketing, up to 100% of the company’s profit is spent on bonus payments. Even if the company does not have the costs of producing goods (some sell only intangible business opportunities :-)), at a certain stage of development it will collapse due to accumulated debts. There are no miracles in this case.

Many companies that consider themselves serious are doing some measures to reduce risks and extend the life of the binary:

• Add leadership and team bonuses
• Bonuses for people invited personally
• The percentage of bonuses gradually decreases with increasing depth
• They focus on the product and stimulate additional purchases by old members (and in fact simply reduce their bonuses)

All these measures are not very effective, since they do not affect the reasons for the collapse of the binary (payments from endless levels). There is only one way out - to limit the number of paid levels, but then all the advantages of binary marketing will disappear. Some companies combine binary and linear marketing. But these are all big words. If the number of paid levels is limited, then this is the most ordinary linear network marketing, if not, then binary, whatever you call them.

Let's calculate a typical binary plan

For example, let’s assume that the “coolest product” of our “Coolest company” costs 100 USD. (or $100). Inexpensive, it will not be difficult for beginners to buy it. The minimum entry qualification is to purchase one unit of the company's product and invite two people personally. All this is not difficult to accomplish, that’s what it’s all about. Next, to receive payments, you need to close bonus cycles: 4 new clients, 2 in each branch. It doesn’t matter who makes these invitations - you, your sponsors or the people under you.

For each cycle in your structure at any level you will be paid 20 USD. or it turns out to be 5% of the company’s income (4 sales of 100 USD each).

Further, for simplicity, we will assume that in your structure each level is completely closed; if this does not happen, then there will be some confusion in the calculations, but the main trend will not change. Only empty volumes will appear, system ballast, which will slightly delay the collapse of the binary. But we will assume that your structure has gathered active and friendly participants who evenly fill their cells.

1, 2, 4, 8, 16, 32, 64, 128, 256, 512, 1024 …

This row represents the number of participants at each level from 0 to 10. Each participant buys the company's product once. Then the income of funds at each level is calculated using the formula:

Coming: 100·2^n, Where n— the number of the last filled level, and ^ - exponentiation. For level 5, the company’s income will be equal to 3200 USD.

Consumption is calculated from the following considerations. For example, in our structure level 5 is completely filled, then level 4 participants do not receive their bonuses, since they have not fulfilled the bonus qualification. Payments start from level 3 participants. We got 8 of them for 20 USD. 4 participants from the 2nd level will close 2 cycles of 20 USD each, 2 from the 1st to 4 cycles, and 1 leader at this stage will close 8 cycles. The total cost of payments will be:

(20·8 + 20·2·4 + 20·4·2 + 20·8·1) = 20·(8+8+8+8)= 640 c.u.

Normally, income is much higher than expenses, as long as everything goes well. To calculate the cost of payments, you can generalize the formula and express it through the number of the last level.

Consumption: 20 n 2^(n-1), Where n— number of the last filled level.

Now we need to find n at which the flow rate equals the flow rate. To do this, we need to solve an easy power equation.

20 n 2^(n-1) = 100·2^n,

After obvious and simple transformations, we get that with n = 10 Income = Expense. Thus, upon reaching level 10, the binary collapses. But due to, for example, personal bonuses, this moment may come even earlier.

Of course, it is possible to redistribute income from previous profitable levels, but there is no point in doing this for the organizers, they already have the money, and the further the development of the structure, the greater the debt. At the 11th level, 204,800 USD will be received, and you will need to pay bonuses for 204,800 + 20,480 = 225,280 USD.

Let's estimate who and how much money will manage to get before the collapse. 1024 + 512 = 1536 people from the 10th and 9th will not receive anything, they will only invest 100 USD. For the entire time in the structure, 256 people will receive 20 and their minus will be 80 USD, 128 at 60 USD, 64 at 120 USD, 32 at 260 USD, ... The leader will receive as a result, for the entire period of development of its structure, 20+40+80+160+320+640+1280+2560+5120 = 10,240 USD.

And then your sponsors tell you that it is not so important at what stage you entered the binary. As in any other pyramid, this is very important. You will either make money or lose your funds. The lower you are in the structure, the greater the chance of not receiving your payments. Even if bonus payments start from the lower levels, the leaders will not have enough money for more high levels and they will simply leave the company. You will develop your structure on your own and at a certain level there will not be enough money to pay you and you will be forced to start all over again or leave the company.

For example, introducing restrictions on maximum weekly or monthly payments can extend the life of the binary scheme a little. But this is only a temporary solution. You can't fool math! Moreover, the ideal case was considered when all income went to pay off bonuses, but there are also costs for manufacturing the product, paying for servers and website maintenance, salaries for staff and company administration.

I welcome everyone to the humble abode of my blog. Despite the large number of ardent opponents of MLM companies, the popularity network marketing never faded away. And today interest in this type of business has increased several times.

Beginners who have just become acquainted with this type of income have a dozen questions, such as: “how not to make a mistake when choosing a company?”, “how profitable is it and what are the risks?” etc.

Such questions are normal; I myself was once in search of information of this kind.

In this article we will look at what network marketing is: how it works and the basic principles.

The principle of network marketing - in implementation own products companies through direct sales. Everything here is simple and clear. Networkers - must find buyers or attract partners to expand the team.

Thus, the company does not spend fabulous money on advertising its product, because no best advertising than a live conversation and product recommendation based on your own experience.

At the same time, each networker receives his profit from sales and attracting new partners. And everyone wins. However, there are differences between the principles MLM work companies, they consist of different marketing plans.

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The marketing plan represents the working conditions of distributors (networkers).

These are the rules by which payments are assigned, as well as bonuses and other incentives for MLM partners.

This plan determines the strategy and tactics for selling products on the market.

Before becoming a partner of a company, a person must study the current plan. Only in this way will he be able to develop an effective strategy for his promotion and clearly understand where and for what he makes a profit.

To date network organizations There are three main types of marketing plans used around the world:

• linear;
• binary;
• matrix

Let's look at each of them in more detail.

Linear plan

The linear plan implies the following system:

Each partner you invite becomes a first line partner under you. According to the classic recruiting scheme, you need to recruit 5 active partners into the first line. Of course, you can do less, but more is better.

Each of them acts on exactly the same principle as you and invites their five partners, who in turn belong to the second line.

Provided that you invited 5 people, according to this system, 2 lines are already a team of 25 people.

However, the chain does not stop there; each line creates another and, theoretically, their number can be infinite. The more such lines below you, the better your position at the top and, accordingly, your income.

Like all business plans, there are pros and cons. Let's start with the advantages.

• you receive a percentage of the purchases of the people you invite. For example, even if you attract just one person, you will make a profit from their regular purchases.
• earnings in this case can be unlimited. Thus, partners at the top of the structure achieve earnings of several million monthly.

The disadvantages of a linear plan include:

• conditions for monthly purchase of products. Yes, the partner always receives a discount on a personal purchase, and the products of large well-known MLM manufacturers really have high quality, but having to buy such products every month can be a little expensive if you don’t take care of it by talking to your sponsor;
• Also, the disadvantage of such a strategy is the gradual increase in earnings. In order to receive a stable and good income, you will have to work actively for several months.

Binary system

The binary plan is simpler in the sense that you only need to invite two partners.

You invite two, each of them also two and then in the same order.

Income under this scheme will be calculated from the turnover of the smaller leg of the binary tree. Therefore, it is necessary to monitor and support each of the teams so that they develop more evenly.

A binary marketing plan usually allows you to earn more decent amounts.

Matrix marketing plan

This type of marketing is most often used in those very financial pyramids who, due to inexperience, are mistaken for network companies.

The matrix is ​​formed according to the mathematical scheme of doubling superior lines, and its main feature is limited width and depth, although visually, if you look closely, it can be similar to binary marketing.

The system assumes a limited number of distributors that you can invite to your level. The general shape of the diagram looks like 2x12, which means that the line consists of two partners, and the depth is 12 levels.

After each cell is occupied, a new “hive” is formed.

As in the linear plan, theoretically, partners have unlimited earnings on a limited turnover.

Most modern network companies have mixed marketing plans, usually combining linear and binary marketing.

On this short review I’m finishing up the basic marketing plans for MLM companies.

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P.S. Here is one of my tools for partners so that they can on one's own and successfully build your structure - 7 Free videos. Works in any company.