Wednesday, December 19, 2012

5 Leg Binary in MLM Software


Each year, folks try to surprise me with a new and creative MLM Software Compensation Plan... never been done before. Rumors run wild of a 5 Leg Binary, offering 4 times the income!  Is there such a thing? The Truth will SHOCK YOU!

The 5 leg binary is an interesting beast for MLM Software Developers.  Develop MLM Software Systems for clients, we sit at a unique position to view and test compensation models in our MLM Software Platforms.

In short, if you are familiar with a weak side Binary, then you will understand how this functions. 10% weak side Binary gives you 10% of the value on your weak side or lesser leg.  20% weak side gives you 20% of the weak side.

Some companies will flush the greater leg to the company, some will allow the difference to roll into the next pay period.

So the idea is, the greater leg is the qualifying leg.. it goes to the company, the lesser you own a % of.  MLM Software is designed to calculate % of the lesser leg, unlimited depth, to the distributor.

Now, the 5 leg binary.
5 legs, of which sales determine which is the greatest leg in the pay period. This greatest leg is the qualifying leg and sales are held by the company. The remaining 4 weak legs or lesser legs, you earn % of.

So, 10% 5 Leg Binary is 10% of the 4 smallest legs, get the idea.

I like the idea, it is interesting and caused me to spend hours, examining it from all angles.
At the end of the day, from a Distributor Standpoint, the company makes money and the Distributor makes little, in contrast of total downline sales.

If you are a company, it is a hot comp plan as it attracts a lot of new people and the company comes out on top.

If you are a distributor, it's not worth your time.

For a distributor, you want money in your pocket, for direct and downline sales, not divided to a dozen levels, as the pennies get split and the income reduced.

By far, of all the modeling I have done for 20+ years, a 1-3 level unilevel with check match, fast start, and bonus pools provide a greater opportunity, based on your efforts. It also provides a slower and stable growth pattern for the company, offering you a chance to be hooked up with a 50 year company, not a 3 month fly and die.

Now for the Fly-In-The-Ointment...
I won't begin to mention the name Binary references "Bi" hence 2 legs.

Those familiar with the Binary know it spills to the extreme left leg and extreme right leg, which ever is the lesser leg.  Well, that's the most sensible way to do it.  MLM Software companies have certainly provided other variations, as required by clients.  Extreme left and Extreme right provide arteries, which persons hope to land in.  Distributors destroy their income potentials by filling in spots of their internal legs.

So, how does a 5 Leg Binary spill?  How will the MLM Software handle the logic?
a.) Extreme Left and Extreme Right? What about the other 3 legs?
b.) The lesser leg at the moment? each leg has 5 legs, so where in the leg?  What logic?
c.) Left to right, top to bottom, next available position across all legs going down by levels?

Yes, "C".  Actually, other companies have tried to use A or B, only to fail to work out the logic.
C provides the best logic for spill, hence going to the lesser position all the time.

So, we aren't working with Extreme Left or Right Arteries are we?
No, in fact, if the truth be known... it's not a Binary in any way!
It is a 5 wide Matrix, spilling left to right, top to bottom, level by level.
Then, determine the total group volume of each of the 5 first level positions (legs)
Now apply the rule... 10% of lesser 4 legs.

So, if done right, is a Matrix with Group Volume calculations and greatest Leg of Group Volume going to Company, balance providing a % as a Commission.

Binary, No.  Matrix, Yes.

Again, there are some that have attempted to build the MLM Software on a Binary Frame.
Failure awaits as the actual logic that works for company and distributors is a Matrix Frame.



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About DB44
DB44 is a software application development of Inspetta LLC.  It is an ASP.Net application with MSSql Server, delivering performance enabled software and database  solutions to business.  One of the specialties of DB44 is MLM Platforms, where website, content management, site replication, admin management, distributor back offices, custom commission calculations, integrated eCommerce and more, must seamlessly deliver accurate results.

About INSPETTA LLC
Inspetta LLC is a leader in Sales, Marketing and Information Technologies Solutions for Business.
A conglomerate Marketing, Advertising, Sales, Software Development, Company Start Up, Consulting and Venture Capitalist.  For more information, contact: info@inspetta.com  1-888-221-0106

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