Wednesday, June 18, 2008

MLM Comp Plan Ups And Downs - The Binary

In my previous post "MLM Comp Plan Ups And Downs - The Aussie 2-Up" we examined the positives and negatives of that type of network marketing compensation plan. Now let's examine the Binary.

WARNING: failure to ask these 3 questions can kill your business.

1. How much volume do I need to make a given income goal?
2. How many people do I need to make a given income goal?
3. What do I need to do to make a given income goal?

A Binary comp plan is divided into two legs of sponsorship with a perfect 1/3 - 2/3 downline distribution requirement for commission payout to occur. A common lure used by some unscrupulous recruiters is a "give away pre-built leg" with massive volume.

The up side of the Binary.

1. A Run-Away Leg: this gives you bragging rights.
2. A Run-Away Strong Leg: this is twice as impressive as a run-away weak leg.
3. Unlimited Depth of Sponsorship: this offers true residual income.
4. Volume-Driven Pay: you get paid on all your team's volume.
5. Placement In Your Upline's Strong Leg: if she's a power recruiter, then you can concentrate on building just your weak leg.

The down side of the Binary.

1. A Run-Away Strong Leg: this is impossible to catch up to … you'll never get paid on it.
2. Unbalanced Team Placement: without a perfect 1/3 - 2/3 downline distribution you earn zippo!

The Binary is a volume-driven comp plan that pays for building limitless depth. If your weak leg runs-away and you are sponsored into a robo-recruiter's strong leg, then you have a fighting chance at capitalizing on a gold mine.

A run-away strong leg is a double-edged sword. It may be a potential network marketing death sentence because the perfect 1/3 - 2/3 balance can not be achieved.

OR ...

Your position in a run-away strong leg can give you legacy income ... so long as you keep up that all-imprtant perfect 1/3 - 2/3 balance.

Super strategists can build a Binary comp plan very successfully. If strategy is not your suit, then the Binary comp plan is not for you.

I appreciate you,

Bill Tessore

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