What is Bi-Gen Plan ?
Binary Generation (Bi-Gen) plan is designed by merging binary plan’s structure and generation plan’s calculation methods. It is mainly used by companies who are into products selling and want to promote repurchase of products in their organization. Nowadays, Bi-Gen plan is one of the most trending plans in MLM industry. Like generation plan, this plan is also good for MLM companies who are having their own manufacturing and want to sell their products by non-conventional methods.
How Bi-Gen plan works ?
Bi-Gen Plan structure is basically 2*n Matrix structure, which allows distributors to recruits only two members in their front line but they can expand their downlines up to N number of levels where they can earn commission by balancing sales volume on both sides.
Bi-Gen plan is similar to binary plan in terms of structure, but the main difference between them is method of income calculation. In binary plan, distributor will gain commission by balancing sales volume on both sides irrespective of company’s turnover but in Bi-Gen plan after distributors balance their sales volume on both sides, company will distribute some percentage of its turnover among all qualified distributors in proportion of their business.
For example, company has criteria of matching 100 PV on both sides to be eligible for minimum income (where PV = Purchase Value of purchased goods: whenever distributor purchases a product form company, company assign certain purchase value to that product for income calculation purpose. For example 100Rs product has 63 PV and likewise). Once you have matched 100 PV on both sides you will have rank of silver and you will get 1 point. Let’s say you have done 400PV worth of business in your downline, so you will have 4 points. Now company has assigned 20% of their turnover for this income which is 20,000/- Rs for this month and total points collected by all the distributors in this month are 2000. So,
So the value of point in this example becomes 10.
After that company convert this value of point into rupees using a formula in which they use BV to convert value of point into rupees (where BV is some exchange ratio decided by the company. For example, 1BV= 5/- Rs).
Income = Value of point (10) * Points collected by individual distributor (4)* BV value (5). So in this example income of distributor will be 200/- Rs.
Types of Income in Bi-Gen Plan
Retail Profit
Distributor will get products at DP (Distributor Price) Rate which will be less than MRP of the products. Distributor can sell those products at any rate which is less than or equal to MRP. Now the difference between Distributor price (DP) of any product and selling price of that particular product will be considered as retail profit for distributor.
Direct Referral Bonus/ Direct Sponsor income
The purpose of this income is to motivate distributors to introduce new distributors in the network and get benefit when they purchase/sell any products from company. How much income they will get after purchase/sell will be decided by company.
Performance bonus
This is a basic income of Bi-Gen plan. After balancing sales volume on both sides distributors will be qualified for this income. Company reserves some percentage of their turnover and distributes them among qualified distributors in proportion to their business. The example we have seen above is example of how performance bonus is calculated.
Consistency Income
The objective of introducing this income is to give benefit to those distributors who are purchasing products of specific amount on regular basis. Once they get qualified for this income, company will distribute fixed percentage of their turnover among qualified distributors in proportion to their business.
Rank based royalty
Rank based royalty allows distributor to earn additional income based on the rank they are holding. Company reserve some percentages of their turnover and distribute them among the qualified rank holders in proportion to their business.
- Rewards
Fixed Rewards :
This is an additional incentive that company will provide once distributors complete the predefined task. The incentive will be in form of cash or kind set by the company.
Flexible Rewards :
This is an additional incentive that company provides once distributors complete the task which company decides from time to time. The incentive will be in form of cash or kind set by the company.
Advantages of Bi-gen Plan
- This is a stable plan because not more than fixed percentage of the turnover will be distributed among distributors.
- Support system will be good because every distributor has to manage only two teams.
- This plan is effective if your organization is into product selling.
- This is not speculative plan because not more than what company has decided will be distributed among distributors.
- There is no capping in this plan which gives distributor an opportunity to earn more money.
- Attractive plan for product selling based distributors.
Disadvantages of Bi-Gen Plan
- It is complex plan in terms of calculation, so sometimes distributor may not be able to convey it properly to new comers.
- Value of point in incomes will be changing on every pay-out so one cannot predict how much they will earn.