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Binary VS Matrix Network Marketing Plans: What's the Difference?

Network marketing is a business model that is constantly evolving. The most recent innovations have been in the form of compensation plans and these new ideas are quickly becoming the norm for companies across the world. The two popular MLM plans are binary and matrix, with each one having different pros and cons depending on which network marketing company you choose to work with. 

In the world of multi-level marketing, there are a few terms that may be confusing to some. One such term is spillover. Spillover denotes the placement of new distributors at available positions under the downlines. These may or may not be their direct referrals. This process varies among the binary and matrix MLM plans. 

Binary MLM Spillover plans offer more benefits to distributors. Distributors in a binary MLM plan are able to build the team by including spillovers or bringing other distributors into their group. This gives them more options for finding like-minded people who share their interests and work ethic. Spillovers can be used at any time during the growth process, and they offer benefits such as mentorship from experienced members of the company. Various types of binary spillover plans are, 

  • Extreme left or extreme right spilling
  • Weaker leg or Stronger leg spilling
  • Balanced-spilling
  • Multi-center tree spilling

Matrix spillover is, when a distributor who has been promoted to the next level in a matrix system, promotes those below them at their own levels. In today's market, there are more distributors than ever before in MLM systems with higher matrixes. When new distributors are introduced into a plan, they are added to the bottom of each row and then work their way up until they reach the top level of their respective matrix. There are two types of matrix spillover: Top to bottom - left to right and alternative spillover.

Direct sales is a business model that sells products and also focuses on building relationships with customers. Network marketing is a popular form of direct selling, which has improved by balancing trust and satisfaction in the business. Direct sales debuted in the world of commerce as a business that does not only sell products. It also focused on building healthier relations between the customers and distributors. In network marketing, it has improved by enhancing the trust and satisfaction of the distributors and customers in the business.

This article was published on 14.09.2022 by Noufal P Bava
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