Binary marketing is extremely popular in Russia. Having understood its main essence, it will be easy to understand why this happens. A binary network marketing plan is a separate type of matrix marketing. The first line is written out for 2 people. A third person is under one of them. Thus, the binary network marketing system is based on doubling. So her name happened.
Common features
As matrix marketing suggests, calculations in terms of binary marketing are always aimed at only two. And with this are associated the advantages and disadvantages of such a system. Costs are also incurred only on them. But often the use of a binary marketing settlement plan leads to the fact that distributors stop their activities, continuing to receive wages.
Also, supporting them takes a lot of time. At the same time, the structure in this situation is growing much faster. Judging by the experience of network companies with a binary marketing plan, the problem of motivation is completely solvable. The situation is adjusted by accruing bonuses.
It is believed that the binary is most often used by companies seeking a quick start. Binary marketing companies are often found among investment projects and financial pyramids.
What it is
In fact, a binary is a network structure with only two branches. Payment comes from turnover, not including depth. Most often in binary network marketing it is enough to make no more than 2 invitations to each branch for qualification. After that, the next level of 4 employees is built.
At the invitation of the 3rd person, he is considered invited, but he goes down one level to the distributor’s cell. The same situation occurs with those invited by the sponsors. To qualify, collect bonuses, the created structure must comply with the sales norm. For example, make 4 sales - 2 in each branch. But if 4 sales appear in only one of them, then payment does not occur.
As practice shows, in the formulas for calculating a binary marketing plan, the ratio 1: 2, rather than 1: 1, is most often used. It’s easier to work. For example, in one branch, a sale of 1000 rubles is required, and in the second, 500 rubles. And then bonuses are awarded to the employee.
Benefits
The pros and cons of the binary marketing plan are due to the presence of only two branches - two teams. This format has proved itself to be much more convenient than the standard linear format.
In addition, before calculating binary marketing, it should be borne in mind that this will take less time, and only two teams will be supported. Also, such a system is characterized by ease of qualification. Only two invitations are needed.
Goods are purchased one-time, and there is no need for mandatory personal purchases from time to time. In addition, there are ongoing overflows from sponsors. The new members invited by the leaders find themselves 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 instant increase in the cost of bonus payments. Sometimes additional benefits stand out. But a detailed examination reveals that these features of the binary marketing system are rather disadvantages.
disadvantages
When planning to introduce such a system, it is worth considering that the binary often attracts lovers of "freebies." Most of the new members will come to the company with a binary marketing system only to live off others. They will qualify and then expect bonuses from the work of other participants. There are always difficulties in maintaining a balance.
As soon as a strong leader appears in the structure, it instantly warps. In this case, the owner of the binary marketing system will need to either be active or find the same strong leader. Payments are also made from endless levels. Although many people consider this an advantage, in reality it is only an element of the pyramidal scheme. For this reason, a binary marketing system often crashes. In addition, such a system can be difficult for beginners to understand.
And often, under the structure with binary marketing, fraudsters and financial pyramids are actually hidden. And they justify their collapse by errors in the calculations. Is a binar a financial pyramid? In fact, a binary plan is a financial pyramid. It's all about endless levels.
But with the restriction of these levels, the binary actually loses all its advantages that it possessed in comparison with the usual marketing plan. Conventional linear marketing has stringent level limits. When depth increases, payout percentages decrease. And it is impossible to take more than 30% from personal sales and more than 25% from group sales. This distinguishes binary and linear marketing from each other.
Up to 100% of a firm’s profit can go up in a binar to receive bonuses. And even if you do not spend money on production, as a result, the binary structure will crash at a certain point in development. Thus, experts, answering the question whether binary marketing can last long, note that this is hardly possible. Some firms try to extend the lifetime of such a structure by introducing leadership and additional bonuses of a different kind.
In addition, bonuses are added for those who were invited personally. A tendency is introduced to decrease the percentage of bonus with recess. An emphasis is also placed on products, purchases are provoked by old participants. But in practice it turns out that such measures are hardly justified. They have little effect on the collapse of the binary system.
There is one way to get rid of the collapse of this system - it is to limit the number of paid levels. But in this case, there is no trace of the advantages of the binar. A number of firms combine the features of binary and linear marketing systems. However, this is more likely an unfounded statement, since limiting paid levels automatically means linear marketing. But if the levels are not limited - marketing is already binary.
About the chances
The lower the person is in the structure, the greater the chance that he will not receive bonuses and payments. And even if payments start from the lowest level, there simply will not be enough money for leaders at a high level.
They will leave the company. And then the owner will continue to develop the structure, and once again the funds will not be enough to pay him already. And then he will need to leave the company himself. However, making a binary marketing structure live a little longer is possible. 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, as a result, mathematics will win, which assumes the collapse of the binary system.
About the use of binar
Binary schemes have been used in the country not so long ago. They began to spread in the 1990s. However, today they are quite actively introducing them into Internet projects. At the same time, people who have tested the binary network marketing scheme, note the injustice of such a system.
Someone is lucky, and work is underway for him - they bring new people, sell products. And someone doesn’t - getting into a personal branch, the person works on a couple with the invitee. And no one else is invited. And, as practice shows, most cases develop according to the second scenario.
Also, sponsors do not allow an advantage, which means that they give any branch to achieve much greater success. Often the binary system is hardly studied by the organizers themselves - 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 the binary marketing system note that in fact more than half of all companies that assume network marketing implement exactly the binary in the course of their activities. And more and more modern companies prefer this system.
The thing is that in practice, binary marketing is quite simple, effective and flexible. A binary system is actually a binary cycle with strategic functions. This kind of business system enables distributors to help each other, 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 itself.
In fact, each participant in a binary marketing network system, sometimes without even realizing it, is motivated to develop both teams. The system is based on only one cycle - “skew - alignment”. It is also called heart rate or binary rhythm. This is the deep essence, the uniqueness of a system of this kind. Most often, the development of one of the branches in the binary system is much faster, which provokes a bias in the network business.
The second branch seeks to equalize the resulting bias, becoming more active. Due to the constant interaction of these two energies, the two flywheels spin up. While in linear marketing the driving force is a complex career growth, there is no particular need for it in binary.
But it must be borne in mind that such an essence leads to the fact that career growth is difficult to achieve, and the higher the level, the brighter it is.
And in the end, distributors are motivated by seducing false goals. On their way there are many pitfalls. And a similar situation leads to the fact that employees burn out psychologically. Many disappointed people appear in companies who leave them. However, this situation is not typical for all binary network companies.
Details on the scheme
If you are going to understand binary marketing, it is worth considering that until now a single terminology has not been developed in this area, and each company uses its own terms. And under the same words we mean completely different phenomena.
But common to every company that uses the binary is the fact that only 2 distributors can be under the distributor. Where the invitees go will depend on the system in the particular firm.
Most often, in advertising these enterprises it means that the balance is directly monitored by the computer, which leads to the harmonious development of the business. It is good to hear to many. After all, the responsibilities for arranging new attracted persons are borne by the computer.
Payments in the binary system are made taking into account how much comes from the structure to the company. In a number of enterprises, payments are made up, and somewhere accounting is done according to the number of people involved. For example, for 7 people who have registered, the distributor receives a certain amount. At the same time, in order to receive the next reward, 7 more people will be needed whom these past registrants can invite. However, the advantage of binary marketing is that additional persons can be attracted not by wards, but by a sponsor.
When such a feature is voiced by newcomers, for them it sounds like a song. 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 receive something from the sponsor, it is necessary to become a “weak” branch. That is, when a person works actively, he lacks privileges. And no one talks about this to someone who is attracted to the system for obvious reasons. Indeed, otherwise the new face will simply begin to wait, when the sponsor himself builds a structure for him.
To receive a fee, you need to maintain a balance of branches. Most often, 35% in the weak branch and 65% in the strong are enough. The lack of balance pushes the people involved to work actively, to attract new participants to the system.
The next positive point 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 stronger. When there is an imbalance, the efforts are aimed at the development of not both branches, but only one.
Usually, a beginner who is trying to fight for a piece of bread simply does not delve into such subtleties.
On 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 already difficult to stir them up. The newcomer does not understand where his fees are, because he brought two people.
It must be borne in mind that in a binary marketing system it is impossible to reach the top of a career. In this case, we are not talking about enterprises that resort to binar only at the start in order to quickly gain momentum, and then move on to traditional linear marketing.
The imbalance, fatigue of distributors and the difficulties of career growth lead to the fact that once the development of a leader stops. And this never happens at the top of a career, it happens before.
Typically, products for binary marketing are selected from the service sector. We are talking about membership in many clubs, short-term insurance programs and other services. Usually, services require additional contributions after a certain period. This may also be the attraction of a new member. In some firms, payments accompany additional jobs in the system. They are also developing. Often a situation arises when, as a result, expenses exceed revenues. A person who has reached a higher level of career in the system, as a result, ceases to receive money at all. While beginners get them. And it's not about activity, but especially binary marketing. Thus, binary marketing is a great school for beginners in the field of network marketing. This kind of business seems very simple for quick money making, which is why a lot of people are always attracted here. And when they really begin to work, they quickly become industry experts. As a rule, already at this stage, such persons are involved in "neighboring" projects with classical marketing. And then the new involved employees no longer need to explain what's what. Such a scheme is not rarely used by networkers.
Differences between binary and classic marketing
In total, MLM takes into account recommendations for 2 systems: for the funded system and for the permanent recruitment system. They are both considered different tools that calculate rewards for partners. The funded system uses a matrix marketing plan. A constant set of points is characteristic of a linear marketing plan. Usually the last scheme is applied in the presence of products that end - cosmetics, dietary supplements belong to this category. Thanks to this scheme, people are motivated for the next purchase.
In fact, the binary system has proved to be effective precisely in Internet projects. The reason for this phenomenon is that it gives the best results on local projects. In such conditions, the binary allows you to quickly spin up 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 companies with binary marketing that work for 2 years, and there are also 8-year-old companies working according to this scheme.