Binary marketing is extremely popular in Russia. Having understood its main essence, it will be easy to understand why this happens. The binary network marketing plan is a separate type of matrix marketing. The first line is issued for 2 people. The third person is under one of them. Thus, the binary system of network marketing is based on doubling. This is how her name came about.
Common features
As Matrix Marketing suggests, the calculations in a binary marketing plan are always only for two. Both the advantages and disadvantages of such a system are associated with this. Expenses are also made only on them. But often the use of a binary marketing settlement plan leads to the fact that distributors stop active activities, continuing to receive wages.
It also takes a lot of time to support them. At the same time, the structure in this scenario grows much faster. Judging by the experience of network companies with a binary marketing plan, the problem of motivation is completely solvable. The situation is being corrected by accruing bonuses.
It is believed that the binary is most oftenused by firms seeking a quick start. Often companies with binary marketing are found among investment projects and financial pyramids.
What is this
In fact, a binary is a network structure with only two branches. Payment is based on turnover without regard to depth. Most often, in binary network marketing, it is enough to make no more than 2 invitations to each branch to qualify. After that, the next level of 4 employees is built.
When the 3rd person is invited, he is considered invited, but goes down one level to the distributor cell. The same situation occurs with those invited by sponsors. To qualify, collect bonuses, the created structure must meet the sales quota. For example, make 4 sales - 2 in each branch. But if 4 sales end up in only one of them, then no payment occurs.
As practice shows, in the formulas for calculating a binary marketing plan, the ratio 1:2, not 1:1, is most often used. It's easier to work that way. For example, in one branch, a sale for 1000 rubles is required, and in the second - for 500 rubles. And then the employee gets bonuses.
Benefits
The pros and cons of a binary marketing plan are due to the presence of only two branches - two teams. This format has proven itself to be much more convenient than the standard linear format.
Besides this, before calculating binary marketing, you should keep in mind that it will take less time, and only two teams will be supported. Alsosuch a system is characterized by ease of qualification. It only takes two invitations.
The goods are purchased one-time, and there is no need for mandatory personal purchases from time to time. In addition, constant overflows from sponsors are carried out. New members who are invited by the leaders are found under the founder.
In fact, binary network marketing allows you to develop the structure as quickly as possible. At the same time, this provides an immediate increase in the cost of bonus payments. Sometimes there are additional benefits. But upon closer examination, it turns out that these features of the binary marketing system are rather disadvantages.
Flaws
If you are going to introduce such a system, you should take into account that the binary often attracts fans of "freebies". Most new members will join a binary marketing firm simply to live off others. They will qualify and then expect bonuses from the work of other participants. There are always difficulties in keeping the balance.
As soon as a strong leader appears in the structure, it instantly warps. In this case, the owner of a binary marketing system will need to either be active himself or find an equally strong leader. Also, payments are made from infinite levels. Although many people consider this an advantage, in reality it is only an element of a pyramid scheme. For this reason, the collapse of the system with binary marketing often occurs. In addition, such a system can be difficult to understand for beginners.
And often scammers, financial pyramids are hiding under the structure of binary marketing. And they justify their collapse with errors in calculations. Binar is a financial pyramid? In fact, the binary plan is a financial pyramid. It's all about endless levels.
But when these levels are limited, the binary actually loses all its advantages that it had compared to the usual marketing plan. In conventional linear marketing, there are strict limits on levels. As the depth increases, the payout percentages decrease. And it is impossible to take more than 30% from personal sales and more than 25% from group sales. This is the difference between binary and linear marketing.
In a binar, up to 100% of the company's profit can go to the issuance of bonuses. And even if you do not spend money on production, as a result, the binary structure will collapse at a certain point in development. Thus, experts, answering the question whether binary marketing can exist for a long time, note that this is hardly possible. Some firms are trying to extend the life of such a structure by introducing leadership and additional bonuses of a different kind.
Besides this, bonuses are added for those who were personally invited. A tendency to decrease the percentage of the bonus with a deepening is introduced. There is also an emphasis on products, and purchases by old participants are provoked. But in practice it turns out that hardly such measures justify themselves. They have little effect on the collapse of the binary system.
There is only one way to get rid of the collapse of this system - it consists in limiting the number of paid levels. But in that casethere is no trace of the advantages of the binary. A number of firms combine the features of binary and linear marketing systems. However, this is rather an unfounded statement, since the limitation of paid levels automatically means the linearity of marketing. But if the levels are not limited, marketing is already binary.
About chances
The lower a person is in the structure, the stronger the chance that he will not receive bonuses and payments increases. And even if payments start from the lowest level, there will simply not be enough money for leaders at a high level.
They will leave the firm. And then the owner himself will continue to develop the structure, and one day the funds will again not be enough to pay him. And then he will need to leave the company himself. However, it is possible to make a structure with a binary marketing scheme live a little longer. To achieve this goal, you will need to limit the maximum weekly or monthly payments. However, the effect will again turn out to be only temporary, and mathematics will win in the end, which suggests the collapse of the binary system.
About the application of binary
The use of binary schemes in the country began not so long ago. They began to spread in the 1990s. However, today they are quite actively implemented in Internet projects. At the same time, people who have tried the binary scheme of network marketing note the injustice of such a system.
Someone is lucky, and work is being done for him - new faces are brought in, products are sold. But someone doesn’t - getting into a personal branch, a person works together withinvited. And no one else is invited. And, as practice shows, most cases develop according to the second scenario.
Also, sponsors do not allow overweight, which means that they give any branch to achieve significantly more success. Often the organizers themselves study the binary system with difficulty - they can hardly predict what is expected in the binary system after two years, five years. The reason lies in the lack of information, methods for studying the binary system.
Successful Implementation
Proponents of the use of a binary marketing system note that in fact more than half of all companies that involve network marketing implement binary marketing in the course of their activities. And more and more modern companies prefer such a system.
The fact is that in practice binary marketing is quite simple, effective and flexible. The binary system is actually a binary cycle with strategic functions. A business system of this kind enables distributors to assist each other and interact with each other. All this leads to the fact that the network is developing extremely dynamically. And each participant has every opportunity to build an even more powerful system than the sponsor directly.
Essentially, each participant of the network system with binary marketing, sometimes without even realizing it, is motivated to develop both teams. The system is based on only one cycle - "skew - alignment". it's the samecalled heart rate or binary rhythm. This is the deep essence, the uniqueness of the system of this kind. Most often, the development of one of the branches in the binary system occurs much faster, which provokes a bias in the network business.
The second branch seeks to equalize the resulting imbalance, becoming more active. Due to the constant interaction of these two energies, the two flywheels are untwisted. While in linear marketing the driving force is complex career growth, in binary marketing there is not much need for it.
But keep in mind that this essence leads to the fact that career growth is difficult to achieve, and the higher the level, the brighter it manifests itself.
And as a result, distributors are motivated by false goals. There are many pitfalls along the way. And this situation leads to the fact that employees burn out psychologically. Companies have a lot of frustrated people who leave them. However, this situation is not typical for all binary network companies.
More about the scheme
When going to understand binary marketing, it is worth considering that up to now a single terminology has not been developed in this area, and each company uses its own terms. And the same words mean completely different phenomena.
But the common thing for every firm that uses a binary is the fact that only 2 distributors can be under a distributor. Where invitees go will depend on the system in the particularfirm.
Most often in the advertising of these enterprises it appears that the balance of the branches is monitored directly by the computer, which leads to the harmonious development of the business. This is good to hear from many. After all, the responsibility for arranging new attracted persons falls on the computer.
Payments in the binary system are made taking into account the amount received from the structure to the firm. In a number of enterprises, payments are added up, and somewhere accounting is carried out according to the number of persons involved. For example, for 7 people who have registered, the distributor receives a certain amount. At the same time, to receive the next reward, you will need 7 more people who can be invited by these registrants. However, the advantage of binary marketing is that additional people can be attracted not by the wards, but by the sponsor.
When this feature is voiced to newcomers, it sounds like a song to them. But do not forget that the sponsor's sales are transferred only to a weak "shoulder".
This is how the paradox develops - in order to get something from the sponsor, you need to become a "weak" branch. That is, when a person works actively, he lacks privileges. And no one talks about this to those who are attracted to the system for obvious reasons. After all, otherwise the new face will simply begin to wait until the sponsor himself builds a structure for him.
To receive a fee, you need to maintain a balance of branches. Most often, 35% in a weak branch and 65% in a strong branch are enough. The lack of balance pushes the involved persons to work actively, to attract new participants insystem.
The next positive moment in the imbalance is the fact that in the case of the active development of one branch, efforts begin to be paid twice - three times as much. When there is an imbalance, efforts are directed towards the development of not both branches, but only one.
Usually a beginner who tries to fight for a piece of bread simply does not delve into such subtleties.
In practice
Practice has shown that often newcomers, realizing that it is enough for them to bring two people to start receiving fees, simply bring their relatives. And then, remaining a weak branch, they expect payments. And it's hard to shake them up. The newcomer does not understand where his fees are, because he brought two people.
Be aware that it is impossible to reach the top of a career in a binary marketing system. We are not talking about businesses that use binary only at the start to quickly gain momentum, and then move on to linear traditional marketing.
Imbalance, fatigue of distributors and difficulties in career growth lead to the fact that one day the development of a leader stops. And it never happens at the top of a career, it happens before.
Typically, products for binary marketing are chosen from the service industry. We are talking about membership in many clubs, short-term insurance programs and services of a different kind. Typically, services require you to make additional contributions after a certain period of time. It can also be the attraction of a new member. In some firms, payouts accompany additional jobs in the system. They areare also developing. Often there is a situation where, as a result, expenses exceed income. A person who has reached a higher level of career in the system, as a result, ceases to receive funds at all. While beginners get them. And it's not about activity, but about binary marketing in particular. Thus, binary marketing is an excellent school for beginners in network marketing. This kind of business seems to be very easy to make quick money, which is why a lot of people are always attracted here. And when they really start to work, they quickly become specialists in the industry. As a rule, already at this stage, such persons are involved in "neighboring" projects with classical marketing. And then the newly attracted employees no longer need to explain what's what. Such a scheme is often used by networkers.
Differences between binary and classical marketing
In total, MLM takes into account recommendations for 2 systems: the accumulative system and the permanent recruitment system. They are both considered different tools that calculate rewards for affiliates. In the accumulative system, a matrix marketing plan is used. A constant set of points is characteristic of a linear marketing plan. Typically, the latter scheme is used in the presence of products that run out - this category includes cosmetics, dietary supplements. Thanks to this scheme, people are motivated for the next purchase.
In fact, the binary system proved to be effective in Internet projects. The reason for thisphenomenon lies in the fact that it gives the best results on local projects. In such conditions, the binar allows you to quickly unwind and provide partners with profit. The finiteness of the system, how long it will live, will depend on the characteristics of the product itself. There are firms with binary marketing that work for 2 years, and there are also 8-year-old companies that work according to this scheme.
