InternetNextStep.com Consulting - MLM Software

Link: http://www.internetnextstep.com

The binary! First lets talk about what this is, and where it can be used and who it tends to appeal with before we get into it being good or bad, or all the myths associated with it.


First, a description of a binary. Binary means 2. A binary compensation plan has two legs. It is like a 2 legged matrix, but it has unlimited depth.


Binary's often pay weekly, but it Japan it is common for them to play monthly as well.


The old VS. the New


Old binary's used to have a point cap on a weekly basis, which in turn limited the amount that could be earned from a business center. For example 5000 points on the left and 5000 points on the right for earning $1000. Very often binaries run on about a 10% payout on the number of points. In the above example total points are 10,000 and the payout would be $1000. This was very typical of Old binaries used by companies like Usana, Market America, N/A/T/O/ International etc.


As you earned points in these compensation plans, you would need to balance your points on the left and right by way of steps. For example, you got 1000 points on the left and 1000 points on the right this would be considered a step, and you would get $200. You would also usually have a cap on the number of points you could earn on one side in a week. Often around 5000. Any points you earned in excess of 5000 would flow up line. They would not be stored in any way. Every week was like starting over. This wasn't ideal.


These binaries gave the whole binary a bit of a bad name after an initial surge of popularity.


The new binaries eliminated a few of these negatives.


First, they offered cycling which meant you could earn a whole cycle more than once a week. They then capped a center at a considerable weekly sum of money, often over $20,000 a week. This was certainly better than the $1000 a week limit of the older binaries.


The next thing a lot of the newer binaries did was eliminate the need to have 50 - 50 balance in your points to be paid. The most common was to allow 1/3 - 2/3 split of volume. This allowed for a distributor to have a stronger leg and not be penalized for it as much. A much better version of the binary. It was used by such companies as Skybiz, TeamGlobe.com, Enliven, and World Games Inc.


This updated version of the binary has proven to be one of the fastest growing compensation plans out there, but has not yet proved itself to be a plan of longevity. The longest i know of so far is www.worldgamesinc.com who is now in their 4th year using this type of a plan, though they did add matching bonuses to thier plan which could be the magic modification to longevity, it may be to early to tell. I welcome comments from anyone on new or old binaries and how long they have been around or cool features they have used to attract your attention. Also would love to know how big your teams are in these companies you inform me about.


Next we will get into the Pros, Cons and all things wonderful and horrible about the binary!

Link: http://www.internetnextstep.com

Commission plans has to be one of the most controversial topics in the MLM industry. The truth of the matter is the old lines of division between Binary, Matrix, Uni-Level, and Stairstep breakaway have blurrred considerably. We will use this as a starting point on the topic of compensation plans and you can find details and discussion or place details and discussion in the various sub categories of this blog.


Compensation plans all have the same thing in mind. How do you make it more attractive to the distributors than the next companies when all companies basically have the same amount of margin to cut up and pay out! Not so easy! Depending on your product mix and target market, you can start to develop a compensation plan. Compensation plans are not a one size fits all item. By looking at your company, product, and target market (internet mooches, grass roots distributors, online distributors, offline distributors, customers only, distributors only, retail sales, wholesale sales etc.) you can start to narrow in on what kind of commission plan you are looking for.


Enough on this for tonight.

Link: http://www.internetnextstep.com/mlm_software.htm

The world of MLM software is a confusing one. Do you buy someones software? Do you put a team together in house to build your own? Tough decision but one that may be made easier by looking at the cost. Many of the software packages on the market have had hundreds of thousands, or in the case of our software just over 1 million dollars put into developing them over a two or 3 year period. Why assemble a team when you can buy into that kind of experience for pennies on the dollar?


Next thing to look at may be how many companies that try to bring Software development in house fail due to the software not keeping up when they get the big sales volume increase. Scaleable well thought out systems will allow your growth spurts to go much easier.


How about software price? If you go cheap, you can often expect what you pay for. Software that will work in the beginning, but may fall over in the crunch time of your growth spurt.