“Binary MLM Compensation Plan Review”
Binary MLM… Be sure and check out the Bonus Video that goes with this article by clicking the following link:
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Binary MLM Compensation plans are complicated subjects for most to understand. Many would be marketers and even novice distributors have little depth in understanding them. Binary MLM plans, though they may be simpler than most to understand, are no exception to this rule.
It has become increasingly clear to me that a MLM compensation plan needs to be subject to the same evaluation process that any Mlm opportunity, its’ leadership, products, and marketing system go through before you make a decision about joining one. This is as true of a Binary MLM as it is of the other pay plans.
You are going to invest yourself, your time, energy, dreams, and resources into building a business. If distributors better understand the dynamics of the pay plan first, they will be better able to choose the right opportunity to invest their lives in.
While the Binary MLM pay plan is clearly important, it is only one part of any MLM opportunity. It is your duty to look at the whole package, including but not limited to: Pay Plan, Product, Automated Tools, Market Size, Leadership, Start-Up Costs, Mentorship, and your personal level of preparedness.
Do yourself a favor; seek out third party information, facts, and resources that deal with exactly what it is going to take to be successful in this industry first, before you make a decision about any company or MLM as a business opportunity including Binary MLM Compensation Plans.
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With that being said, let’s now look deeper at Binary MLM Compensation Plans.
Be sure and check out the Bonus Video that goes with this article by clicking the following link: Binary MLM Compensation Plan Video
Are Binary MLM Compensation Plans proven and sound?
Binary MLM compensation plans have been around the last couple of decades. They have undergone improvement and revision during this time to improve payout plans for distributors as well as protect the companies from over paying distributors and thereby cutting short company lifespan.
Binary MLM pay plans may be relatively new to the network marketing industry as a whole, but it clearly hasn’t hurt their popularity any. They are popular among network marketing companies as well as with established members of the industry.
There are a number of advantages that makes Binary MLM plans attractive to all network marketers. This includes those new to the industry, part timers, experienced full timers, and heavy hitting big guns as well. Some consider Binary MLM to be the most exciting of the pay plans due to the lucrative payouts they can provide.
Are Binary MLM Plans a Pyramid Scheme?
Pyramid Schemes are illegal enterprises. Binary MLM plans may look like a pyramid when they are filled up, but the similarity ends right there.
You see, the Binary MLM pay plan is not set up to be a recruiting game where people are only joining the Binary MLM are doing it for the opportunity to make a lucrative payout. The people joining a Binary Mlm pay plan must be joining to market a legitimate product or service to the market and not for the purpose of recruiting for payment. As defined above that would be a pyramid scheme and that’s strictly illegal.
An easy way to spot a pyramid scheme is there is no legitimate product or service for sale. Another clue is there is no payout unless you successfully recruit a specific number of people into the pyramid. You’re paid on enrollee’s and generally there is no selling or marketing of products or services to receive payment.
This isn’t the case with Binary MLM pay plans and the companies that use them…
Advantages of Binary MLM Compensation Plans
- Binary MLM plans are about the most exciting of all MLM pay plans because of huge potential payouts they offer.
- Most Binary MLM’s pay weekly or bi-weekly, whereas most other MLM compensation plans pay commissions only once a month. This helps new recruits get into money fast and helps foster a sense of immediate rewards for efforts expended.
- Binary MLM downlines pay to infinity. This means that you will benefit from a strong producer, even if they are 12 levels deep in your organization.
- Binary MLM Plans offer the greatest potential generational earnings depth of any of the four basic compensation plans in network marketing.
- Binary MLM Compensation plans are great for fostering teamwork in an organization. It is beneficial for your upline to assist your success, there success benefits you, and your downlines success benefits everyone. This tends to build team unity and cooperative energy.
- You really only need to concentrate on building one leg of your business- your “Money Leg”. The other leg of your downlines matrix or “Power Leg” is usually being built by those in your organization that are above you, and more experienced than you.
- Your power leg will usually grow faster than you can possibly keep up with. With a binary compensation model, your up-line will place their new members under you into what’s called your powerleg. This is referred to as spillover.
- The initial Binary MLM Compensation Plan is much easier to understand and maintain qualifications for than other plans created before its’ inception.
- Binary MLM plans do an excellent job compensating mid-range commission earners. It does not do as well on low end commissions or very high end commissions
- Binary Mlm Compensation Plans help the average and even less than average network marketer to be able to achieve success, and realize the potential for financial freedom.
Disadvantages of Binary Mlm Compensation Plans.
- Binary MLM pay plans may require more work on your part. But it doesn’t mean they are any less lucrative for those who work them correctly.
- This type of Mlm plan is a balancing act. Most companies that use binary pay plans pay only on the weaker leg (money leg) in your downlines and the matching volume from your power leg. Large sales volume may be flowing through your power leg but you only capitalize on the balanced amount flowing through your money leg. You get paid a commission on the matching amount of volume; this can leave a lot of money on the table.
- Pitfalls of Placement: You will need to understand how many people you must personally add to your legs for extra bonuses, and understand the importance of placement within these legs to avoid making mistakes that could cost you potential money made.
- Binary MLM pay plans have upper limit payout caps. Most Binary MLM’s have a maximum upper limit on earnings called a payout cap (more about this later). Each business center has a limited earning potential which maxes out to ensure that both distributors and the company earn a profit. Some distributors don’t realize this. However, Binaries may be combined with other commission payment types, earning bonuses, and multiple business center options to alleviate the capped earnings problem.
What you need to know about Binary MLM Plans to make them work?
Binary Mlm Compensation plans are built upon the simple principle of 2. You have 2 groups of people called “legs”. As you enroll new distributors into your business you place these new enrollee’s into either your left leg or your right leg (power leg or money leg). The length of each leg is usually unlimited as payout depth for these legs is theoretically to infinity.
The Power Leg:
The legs in your business are given names, and each play in important yet differing role in your business organization. One of your legs is your power leg where your sponsor added you to the matrix. It is also where your upline will continue adding people below throughout the life of your business. This “Power Leg” grows fastest, (usually faster than most distributors can keep up with.
The Money Leg:
Your “Money leg” is the leg you are 100% responsible for building and maintaining. It essentially decides what you are eligible to be paid for.
With most plans you get a bonus for adding a balanced group of people (6-12-24-50 etc.) to your sales organization. Your upline is already helping you build one outside leg, but it is filling in the inside area and adding to your outside leg where the money is made.
That’s why this other leg in your organization is referred to as your “Money Leg”. This is the leg of your business where you will add new people and start making money.
Aspects of Binary MLM Compensation plans that you may not be aware of.
THE Most Powerful Incentive That Companies Use to Get People Involved In And Excited About Their Company Is… They Over Promote the “Spillover” Aspect of the Binary MLM Pay Plan.
The Most Hidden and Overlooked Aspect of Binary MLM Pay Plans is That Spillover Only Occurs into Powerlegs and Nowhere Else.
So what does that mean?
It means that because your upline shares a leg with you in their organization, you automatically get their new enrollee’s placed beneath you in your organizations powerleg. This occurs because all the positions above you are already filled in. Essentially there is nowhere else to place them.
Now, let’s say in this example that you share your left leg (powerleg) with one of the heavy hitting top dogs in your organization and their team. Your other leg (money leg) makes up the right side of your organization and is made up of you the people you enroll. In other words, the right leg and inside positions are built and filled by you and the organization your team is building.
The left leg of your business “power leg” grows like mad due to the efforts of the super team of distributors above you and their efforts. Tremendous sales volume and numbers of new recruits fill this leg of your business and it is exciting watching it grow and develop every day. Some serious bank is flowing up this side of the matrix.
So what’s the problem you may say? Isn’t that a good thing you ask? Yes it’s great if you can keep up. But remember you are responsible for building the other “money leg” of your business.
You get paid off the balanced ratio between the two legs, whether it’s half or third balancing (more about this later). You still have to balance the two sides in ratio to get paid and begin capitalizing on all that flowing sales volume moving up the powerleg of your business.
You can’t join, sit back, relax and expect the big buck checks to come rolling in just because your binary MLM pay plan has ‘spillover’. You have to work the plan, get people to join with you, place them on the appropriate side of your business organization, and get them recruiting, duplicating, and generating sales volume.
Sounds like work I know, but that’s the real name of the game when it comes to succeeding in a Binary MLM Plan. Don’t be convinced otherwise.
The basic concepts of Binary MLM Compensation Plans include:
- Distributor’s sponsor two peoples into their organizations creating two downline legs, a money leg and a power leg, and then sequentially build their downlines under those two legs.
- Some BinaryMLM plans allow distributors to have multiple business centers—usually three, or seven.
- Most Binary MLM pay plans pay their downline commissions once a week.
- Distributors have to generate downline sales volume that is balanced between the two downline legs. Payment is received for the matching sales volume of the weaker sales leg. When a distributor reaches a specific level of balanced sales volume, they receive a commission check.
- Multiple Center Concepts: a concept that allows distributors to have more than one position in the downline tree. There are usually two ways this may be a distributors business incorporated into a Binary pay plan.
- Once a business has filled its original allotted matrix they are allowed to add a new business center within that tree and build another downline matrix from the newly created center.
- All business centers are created at the time of sponsorship and all subsequent enrollees are placed under these multiple business centers.
How do Binary MLM Plans pay you?
50/50 Balanced Payout Plan
50/50 plans are just like the sound. The premise is based on equal share balanced between the two legs of your business that has to occur before payout. For example six on the left and six on the right and the matching balanced business volume that accompanies them. If there is 1500 in business volume in your “Money Leg” and 4500 in business volume being generated by your “Power Leg” you get paid on the balanced volume of the weaker money leg or 1500 in this example.
1/3 – 2/3 Balanced Payout Plan
Other binary MLM pay plans require a one-third / two-thirds split between legs. When one side, left- or right-side, has one-third of the distributors and the other side has the other two-thirds then payout occurs. A one third two third balance has occurred. When Binary has four people on one side and eight people on the other side for a total of twelve people, then payout occurs.
Other Occurring Payments:
Another interesting way that Binary MLM pay plans pay is the payout that occurs on the organization you build. Some Binary plans will pay a commission each and every time a person’s organization grows by a set balanced number.
In this hypothetical example if you get 50 new distributors balanced in your organization you qualify for payout on whatever the 50 person payout money is. Ka-Ching! You get paid this bonus money each and every time this 50 person increase happens. Ka-Ching, ka-ching.
However some Binary MLM compensation plans don’t allow one to carry over recruiting numbers into the next month (there’s no recruiting spillover). Essentially, you just have to start over building new groups of 50 the following month if you didn’t qualify during the current period.
People joining Binary MLM businesses with these type of payout plan options see themselves getting that group of 50, or 36, or whatever number over and over and over again. Ka-ching, ka-ching, and then they see the big numbers of payout really beginning to add up. Ka-Ching! Ka-Ching! Ka-Ching! They see it happening every month, every week, and it’s like gold fever.
The reality though is it’s harder than it appears. That kind of success is possible and it does happen for some. But not for the average or even above average distributor that comes into Mlm. Most people arrive green in this industry don’t have the skill sets, resources, tools, training, and connections necessary to put up those kinds of numbers.
- Binary MLM Compensation Plans pay on the balance between the two legs of your business organization.
- A person does not get paid on the total of all downline sales. Instead they receive a commission on the balanced sales volume of their weakest leg.
- Binary MLM Plans may pay a bonus amount each and every time your business grows a pre-set number of new enrollees per pay period.
- With Binary MLM plans it’s not depth that counts but balance of numbers and sales volume between the legs of your business.
Will a Binary MLM Compensation Plans work for you?
The answer to that question can only be found within you. That answer can only come through careful and thoughtful consideration of yourself, your skills, your attitudes, and your commitment to learn and implement the strategies, tools, and knowledge required to succeed in this exciting industry. Remember that a Binary business structure is not a sit back and let others do the work for you and you’ll get rich business plan. It is quite the opposite.
Mlm is a business. The opportunity should be treated as such, and run in accord with this principle. With that being said, it is also one of the most rewarding and potentially lucrative endeavors you will ever engage in. Proper training education, tools, and a plan for success are essential though.
Insure that you become a success and not another statistic by investing in your self, and in your knowledge about this industry, and what it takes to succeed. Have a plan in place and the resources necessary for your success at hand before you begin, and you’ll be a lot further than most that blindly enter this industry hoping for success.
I hope this article about Binary MLM pay plans was helpful answering in answering the questions you may have had. You are now better equipped to decide whether a Binary compensation will work for you.
2-5% of the distributors in any network marketing opportunity (the ones making the big money, building stable teams, and understanding what it really takes and applying it) will say network marketing is the greatest opportunity they were ever introduced to bar none! They are raking in the cash!
Of the 95% of others, reviews will be a mixed bag of excuses ranging from ‘I made a little money,” “it wasn’t for me,” to “it’s an outright scam and a pyramid scheme”. This is true of not only Binary MLM Compensation Plans but also of the Network Marketing Industry as a whole.
The difference between win or lose, is in the tools, systems and training you receive, and in the person you are willing to become to succeed. Are you, or are you not, willing to become trained and informed to succeed in this industry? Are you ready to apply the knowledge and skills you learn on a daily basis? If not Mlm probably isn’t for you… Are you really ready to take your life business and income to the next level? These are questions you should have answers to before joining an opportunity or considering Mlm, not after.
That’s actually the reason I put this article together. Binary plans are a great opportunity for the right person. But I also understand that it takes a lot of marketing knowledge, proper training, discipline, and mentorship, for most people to earn a significant income from home. People need to hear the truth; they need answers not hype. They need mentorship and strategies that work.
So I wanted to extend an opportunity to people who are both looking at Binary MLM Plans and to those already involved with them. To those looking at Mlm and to those already involved, and help you learn how to recruit people, build a business, and create a sustainable residual business income from home using modern day MLM tools and strategies. The game has changed significantly, yet too many old boys are still flogging a dead horse telling you he’ll still plow just fine for you if you’ll just believe and want it bad enough.
So what I’ve done is put together an incredible amount of cutting edge information, tools, training, and resources that will teach you exactly how to succeed in Mlm, and it will work for you whether you’re involved with a Matrix plan, Binary MLM, Stairstep Breakaway MLM, Unileve MLMl, or any other reputable Mlm Pay Plan. You need to come check me out and sign up for some free training today.
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