Binary system of MLM

[Sovabon]

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Please post your reactions on Binary MLM. Many believe that this system of MLM will not sustain in a long period of time. Why?

[rey]

depende. sa typical binary, if magkadaghan ang members ma enrolled sa company, magka gamay ang income sa company because dili mo stop ang invitation, cge lang ka mag invite ky wala may repeat purchase sa product. whereas, sa binary nga mogamit ug point system, thats the good binary system sa MLM.sa point system, every product nga paliton sa members dunay equivalent points convertible to income.in this system, dunay assurance nga mo last for more than 5 years ang company specially kung ang primary product mga real estate.the more real estate ma sold out, the bigger the chance nga mo last long ang company kay daghan na man capital pra mka expand ug daghang property. the very good safety net sa binary company ang real estate.

[COCOYMAN]

..txt me up...09213021100.ryan......................it depends.............God bless,....................

[Sovabon]

Bro cocoy, pls discuss it here for information to everyone.

[fqhasi]

so far i have research about MLM using the binary system in their marketing plan, it really depends on the company's stability and the background of the owners. Some of the MLM companies are what we called fly by night.

There are 3 things we should consider in choosing a MLM Company, (1) Campany background and owners, (2) products, (3) marketing plan.

you can reach with this no. 09108224519... jojo

[Sovabon]

Guys please enumerate ligimate MLM Companies here in the Philippines that are engaging into binary system.

[heintz]

Bro,

most are legitimate, but the binary plan is doomed to fail within 5 years' time.

Look at these companies. They are copying each other's scheme, and worst is, B copies A's compensation plan and A is tilting towards doom already.

But it doesn't mean they are illegal. It's just the way binaries go.

[smartcutie17]

Binary system is indeed an intellectual strategy for achieving immediate wealth (FOR THE PIONEERS and for those who are on top of the network). it has it's own positive and negative points.i dont think that it's entirely bad because its a system that speeds up sales of products/services.nevertheless, its potential to prosper is truly, ephemeral. it can impossibly stay long..why?in this system, associated with MLM, distributors play a deceitful character, convincing a new distributor to buy a certain package with several inclusions therein(usually those products that usually are not saleable and/or uncompetitive in a traditional marketing system)...the process of convincing continues indefinitely...consequently, if a certain area is saturated of the system, there would be no more people to deceive to join the network...there, the process ends and the unfortunate latest recruits will find their investments gone in the wind...moreover, though you are in the top level networkers, money and wealth are no assurance to you, you still have to posess the talent of deceiving and the ability to determine talented deceivers....

[j_ybanez]

MLM is a good strategy for Marketing Products in business. And several factors are will always be involved in the success of failure of any business strategy even in a Binary System of an MLM Company. Let me share some...

Stability - When engaging in a Network Marketing Business, it is important to partner with a company stable enough in terms of compensating the distributors for their time and effort. What makes a company stable? According to economics, statistics show that stability of a company comes around after 10 years of its operations. New companies will always face the fact that their system of management and operations will not be a fool-proof plan on their first 5 years. This would mean that they would have to do alot of trial-and-errors inorder for them to perfect their system.

Track Record - For one to market their products and services, it would be alot easier if the brand or company has establish a viable track record to the potential market. E.G. Awards from Organizations, Acknowledgements from extra-ordinary performance on the industry... etc, etc.

Vision & Mission - No company will last long in the absence of these 2 factors. The company's vision must be strong enough for the distributors to face the real challenges of being an entrepreneur. The mission must be well stated that distributors would follow each and every aspect of which. These 2 factors stated herewith will dictate the type of professionalism, values and ethics the distributors will possess.

Products & Services - There is no legitimate business when there is no REAL product movement of RENDERING of services to its end line consumers. Legitimacy of any given business can measure by the value-per-value transaction of products and services. For distributors to earn, there must be movements of products and services. That is why, the products should be of high quality and consumable. If no products are being consumed, then the distributors will not be compensated. Even in MLM, the business should be product and service driven. And recruiting isnt one of these.

Unlimited Potential - The idea of being in business in the first place is to eliminate the idea of being limited in terms of profitability and opportunities presented. In the business arena of MLM, people are being compensated for marketing the products of the company through their personal networks. If distributors are not paid according to the value of the products and services being sold, then the distributor is already being limited on his business potential.

CONCLUSION:

I have observed that alot of BINARY MLM Companies are now opening in the Philippines. And what scares the hell out of me is the fact that these companies are trying to kill each other on the business arena. This is not to generalize but I see that alot of people are being invited to these business opportunities with so much focus on GREED, the ability to earn money easy and fast. The value of hard-earned money has been devaluated to simply looking for somebody to recruit without the impartation of the foundations of being in business. Im not saying that these companys into MLM are bad, its just that it all boils down to the professionalism and ethics of the people involved. No wonder why so many joins these business and so few makes it to the top.

The compenstation plan of most of these companys are very very questionable especially in a Binary System. Have you ever wondered why the Start-up Capital is bigger than the actual amount of the products that you receive? This is because people are paid thru recruitment not on product movement. When one joins a Binary System MLM, one must pay for the compensation of the people on top because the compenstation of the distributors are not embedded on the costing of each and every product. Try to make an experiment or a computation analysis of a network in binary and nobody recruits for 1 whole year, if the distributors still earns money during the entire 1 year, then that would be a legitimate compensation plan, and if not, then you know what it means.

I have talked with several distributors of these Binary MLM companies and when i ask them about their structure, they always say its paterned from a US-based MLM Company called USANA. And on further research, i found out that these companies are nowhere near the structure of USANA. Yes its Binary System MLM, but the whole operational aspect is a different story. USANA manufactures their own product lines to lower the cost of production and can embed the compensation of distributors to the prices of their products. Their products are consumable which means that the distributors do not focus on recruiting more distributors to their network but on the movement of products and services and thats how they get paid. Even if USANA distributors stop recruiting, they still get paid through the consumption of products and services.

There is still alot more to say but unfortunately im running out of time here. So guys, your reactions (violent or positive) will be greatly appreciated. Til then.

God Bless and Good Will to all your business endeavors!!!

[askcleft]

binary... hahaha...

if knew that a prominent/influencial person joins an MLM company ex. a Mayor.. i would surely join in one of his legs.. and would not worry recruiting people.. i'll let the person above me work for me.. coz he won't make money out without putting downlines for me. hehehe. hahah.. see... makatapul sad.. very easy.. i'll secretly seacrh for the persons ID no.. ehhehe... dat's wat binary is to me.. just search for the right upline.. and not the downlines..

wanna join?? www.mylli.com watch for their developments in Cebu.. sept 15..

contact me if your interested..