Comparison Between Matrix and Binary Compensation Plans
As multi level marketing is one of the booming marketing technique, where the company uses the customers as the marketing channel to promote their business. So the client, who bought the products of the company will act as marketers.
From network marketing lots of people have gained massive amount of profit.
Each multi level marketing business’ works in a particular style. This style of the business structure is called the compensation plan.
By using the compensation plan ,company provides the compensation and benefits to their customers.
About 10 + MLM compensation plans are available in the market, some of the companies use their own custom compensation plan.
Some of the popular compensation plans are:
- Matrix MLM Plan
- Binary MLM Plan
- Unilevel MLM Plan
- Monoline MLM Plan
- Stairstep MLM Plan
- Gift MLM Plan
- Donation MLM Plan
- Investment MLM Plan
- Generation MLM Plan
- Party MLM Plan
Most familiar Multi Level Marketing plans in the market are Binary MLM plan and Matrix plan.
Why these two plans are using more widely in the network marketing?
What are the advantages disadvantages of these both plans?
To know more just read the following article. An in-depth side by side comparison of Binary MLM software plan and Matrix MLM software plan.
Binary and Matrix MLM plans – a comparison.
As we all know there have many MLM plans in multilevel marketing. New concept and ideas yield scope for modern powerful MLM plans in market.
Matrix and binary plans are the most popular MLM plans in use.
Actually what is the difference between a matrix and binary MLM plan? Which plan is better and unique?
Both the matrix and binary has a different structure and style of operation.
However both plans have a universal acceptance and a worldwide exposure.
Do you wish to know more about the difference and features between matrix and binary MLM plans?
Then this article might be helpful for you.
Binary MLM plan
It is a very simple, and most common used MLM plan. As its name suggest a member can recruit two members in his downline.
This recruited down-lines known as right leg and left leg of the member. This system continues in binary.
Binary MLM software is one of the most reputed MLM plan. The best feature of this plan is it gives equality for all members.
Matrix MLM plan/ Forced matrix MLM plan
Matrix MLM software plan is also known as forced matrix plan. This plan is one of the most common and powerful MLM plan.
In Matrix plan a member down-line is arranged by a certain level of width and depth. Egg. 3×3 matrix, 3×4 matrix, 4×5 matrix etc…
The plan is very easy to handle because of limited members. That makes risk free environment for MLM companies. There is a high earning possibility with this plan.
Let’s have a comparison between binary and Matrix MLM plan.
| MATRIX MLM PLAN | BINARY MLM PLAN |
|---|---|
| A member can only recruit two members in his down line | There is a certain width and depth concept .width and depth is fixed. |
| There is no limit on how deep a distributor can build his network. | The depth is only available up to a certain level. |
| The plan is simple and easy to understand. | It is a favorable plan, with limited complexity. |
| Spill network is possible in binary MLM plan. It is a great advantage in binary. Spill over means your up line can allot new customer or member on your downline. | The spill over principle is an attractive feature in matrix plan, due to limited positions in the top line generally 2 to 3 recruits above this number will spill over to the next generation line. |
| Fast expansion is possible because each member only recruits two downlines. The process become more faster, and expansion of business is high. | In matrix plan there has a possibility of having more than one sponsor. Sometimes you may not be under the direct downline of the person who introduced you. Because of spill over you may be placed as a direct downline of any other distributor. |
| Binary plan ensures more pay out to the distributors. Active user will get benefit through entire team effort. | This plan encourages more team work .When ones a member’s downline completes that member helps his downline members to achieve his target |
| Administration process is quiet easy. Admin can control the team easily. | Most of matrix plans are straight forward and simple. |
| Efficient team work is possible .The spill over concept helps for a better teamwork. | In matrix your downline grow faster. |
| The simplicity of this plan eliminates complex in pay out to the members. | One of the main dis advantage of matrix plan is, it encourage the growth of lazy distributors who don’t works well. It really make frustration for the up line members who put serious time for the work and business. |
| Unlimited growth opportunity is possible. The depth is infinite in binary plan, so there is a possibility to earn big by developing deeper network. | Matrix MLM plan is similar to a pyramid model, sometimes it creates a negativity and a misunderstanding about this plan. |
| Some compensation plans have certain conditions. They will only pay you if there is a certain balance in both of your legs. | Recruiting is easier with matrix system .Many good business plans offer a low investment to start up and remain active. People gets attracted with this opportunity |
| one of the main dis advantage of binary plan is you will only get the possibility of spill over, When your sponsor is strong. If he is not recruiting more members you will miss the spill over chance and need to work hard to build your weak leg. | The number of people required to completely fill a matrix plan is very huge |
However Matrix and Binary MLM plans are initial plans in network marketing.
These two plans have a great acceptance in MLM business industry. The plans are powerful and customizable.
Each plan is divergent in nature. The Compensation structure, and working style are distinct in both plans.
We will see many customized MLM plans in market, the working method can be change in the plan according to the business idea of the particular business organization.
As a fruitful plans, Binary and Matrix MLM plans are also customizable. MLM entrepreneurs implements new ideas and changes in the plan to attain financial growth and stability.
