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

MLM Comp Plans - How Companies Hide Binary Breakage

In "MLM Comp Plans - Why Companies Love The Binary" I revealed the scandalous features that attract MLM companies to binaries like teenage boys to girls. Today we'll see how breakage is hidden from reps and their prospects working this type of comp plan.

Here's what a basic binary looks like.

A binary comp plan has two downline 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 While ⅔ must go into the strong leg.

Here's where the breakage occurs in a binary.

• The Strong Leg
• Unbalanced Growth
• Imperfect Timing
• Viperous Up-Line
• Run Away Strong Leg Growth

The most obvious place breakage occurs in the binary is in the strong leg. Absolutely every single penny of company-wide strong leg earnings go directly to the company.

Nothing less than perfect growth and timing relative to the pay cycle qualifies for payout.

Some naïve prospects have accepted offers of a "pre-built downline" only to discover this downline is their strong leg. Most of these folks never catch up to achieve that coveted ⅓ - ⅔ balance. Meanwhile the upline sponsor that offered this "deal" cashes his fat commission check while saying, "Thanks sucker!"

Even if everything else goes according to the ideal scenario, all it takes to disqualify a business builder is a sponsor monster in the strong leg to strangle the dream of financial independence.

Here are my thoughts on the binary comp plan.

Some compensation plans have much simpler and easier qualification requirements, and actually pay out 50% or more of total earnings to the distributor base. So why would anyone want to settle for maybe just 33%?

This is probably the hardest plan to earn a check from because it requires total perfection. Perfect balance, perfect timing, and perfect upline cooperation … oh, and then there's that wild card run away super recruiter thing.

I am not perfect and I doubt you are either. And even if you are you still can't control what others do. So, unless you are part big-time gambler and part super analyst, then I suggest you look for a company with a comp plan that doesn't stack the deck against you like this one does.

I appreciate you,

Bill Tessore