Here's what a basic binary looks like.
A binary comp plan has two down-line legs of sponsorship. One leg is "weak" while the other is "strong". A classic binary requires ⅓ of all sponsored recruits be placed in the weak leg and the rest must go into the strong leg.
To get a check a perfect ⅓ - ⅔ balance between the two legs must occur when the comp plan "cycles". A cycle is a production bonus pay period.
Here's what companies love so much about binaries.
- Production bonuses are only paid out on a perfectly balanced ⅓ - ⅔ structure … at the end of the pay cycle.
- No money is paid out without that all-important perfectly balanced ⅓ - ⅔ structure.
- No monies are paid out on activity in the strong leg.
- The company keeps a minimum of ⅔ of all monies generated by the entire distributor base.
- The ⅓ - ⅔ structural balance requirement makes payout of residual income virtually impossible.
- Very few network marketers, especially beginners, understand how this comp plan really works so droves of people join and spend lots of money only to learn the hard way.
Most people never make any money with a binary plan because it’s too hard to balance both legs.
Sometimes a rep desperate for a check finds an opportunity seeker and then "gift" excess strong leg members to her saying "I'll put all these people beneath you so all you have to do is build the other leg."
The reality is the newbie is least likely to ever build the weak leg enough to achieve the ⅓ - ⅔ balance so critical to getting paid.
All the while the company sits back and watches the carnage while counting the 66 ⅔% of unpaid money the distributor base spilled their blood, sweat, and tears to earn.
What's my advice?
Unless you’re into astrophysics or rocket science you should find a company with a compensation plan that pays you for all the hard work you do.
I appreciate you,
Bill Tessore
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