MLM – Multilevel Marketing Binary Computation Tip
When joining a multi-level company here’s some tip on pay out computation to see that the company will last long. These computation are solely for binary computation only.
Sorry for those who will be affected but i’m not referring to any mlm company out there, anyway this is not for you but to all the new to-be recruits.
I have created more than 10 mlm software before during the era of prosperity mansion, first quadrant etc.
I have thousands of data to prove my claim and I have applied all safety nets that you can think of like 5th pair will not be given to members, only 16 pairs per day will be paid etc etc.
Below is the sample computation:
Entry Fee = EF (This is the amount the member will pay)
Direct Referral Bonus = DRB ( This is the amount if member A directly recruited member B)
Product Cost =PC (This is the cost the company must give to a newly joined member.
Pairing Bonus = PB ( This is the amount if member A has 1 person on the left and 1 person on the right)
So here’s the simple computation.
NET = Entry Fee – (DRB + PC) (NET will be the mlm company’s amount to play with the pairing bonus)
REM = NET / PB
IF THE REM IS BELOW 5, DOOOOONNNNNNTTTT join the company it wont last long. Having a very low REM means that the company can only pay 5 pairs for every 1 member that joins the company. If REM is more than 10 the better but If I were you can join other MLM company that is selling a product. 
2,087 total views, 8 today
Consider this advise, I agreed that it is better to join MLM company that is selling products.
Thanks dlysen for the comment. MLM is not a bad business don’t get me wrong. Marami na ring natulungan iyan. Pag aralan ninyo mga business plan ng mga nagtagal na sa market. Mostly mga mlm companies 2 yrs lang bagsak na.
If a certain mlm company e nakatagal ng 2 years, magandang factor na yan para i consider mo sila
This is a good source if you are able to promote well and monitor the growth of your ang your underlying’s investment.
Ah,thanks for your advises..It gives an information for who would like to join it.
I didn’t know that only 16 get paid in that kind of scheme. Thanks for sharing.
Thanks for posting this. I always wanted to join an MLM company but I have doubts on it.
Hmmm… not really a big believer in MLM, but I guess it has its merits.
Is ‘pyramiding’ a type of MLM or a different system altogether? I see the pyramid on your visuals, but some MLM companies, allow more than 2 “downlines” for each person.
Oh, thanks for these tips. Might be handy at sometime.
Oh wow! I had no idea there was a proper computation for this and that there’s a way to tell if it’s safe to join or not.
I’ve been too afraid to join any MLM company actually but this is good to know in case I do decide to join in the future.
MLM is not for everyone. It’s similar to any kind of business, whether it’s selling products, an idea or service.
I remember a close chinese friend taught me about this when we were in college. Your blog post is a good read.
i can’t totally relate to this but sure is my husband! i read the whole post and may i say you give me another lesson today
! xx
I don’t like MLM’s or anything similar e.
I have joined an MLM company before, and it’s a real pressure than office job – well for the person who may think that the business is not the right one for you. “MLM is always may or may not be for you. You may not be the right person I’m (Upline) looking for…” Usual lines…
what does REM means?
Pairing Bonus = PB ( This is the amount if member A has 1 person on the left and 1 person on the right)
So here’s the simple computation.
NET = Entry Fee – (DRB + PC) (NET will be the mlm company’s amount to play with the pairing bonus)
REM = NET / PB
Here’s the REM formula