What is a binary plan?The binary plan is a compensation plan that allows you to have two frontline distributors. Any new associates are placed in the levels below your frontline.
This makes the compensation plan enticing to new associates because they only need two associates to take advantage of the compensation plan.
With the two legs, it takes a balancing approach. Each leg must have an equal number of associates. This fosters a team work environment.
The binary plan is designed for teamwork.
It encourages associates to assist the new members in building their own team to reach their financial goals.
It is a new plan adapted by network marketing companies because it attracts new members. New members are forced to focus on volume sales as opposed to a percentage of multiple levels.
Another advantage is that it doesn't have a depth limit. Can you say residual income?! The deeper your team grows the more residual income you will earn. Since there isn't a depth restriction, each team has a restriction on the potential commissions. This is set up to make sure the company and the associates make a profit.
There isn't a limit on how many teams or business centers you may own.
This creates the potential to make a larger residual income. It's like having multiple stores instead of one central store.
Balancing the sales volume between both legs could mean that your hard work leads to little or no payoff. Your own personal sales would not count if the sales volume was not balanced.
To expand profits you expand by creating a new team. Once that team has reached its maximum potential, you repeat.
Typically commissions are paid weekly.
The binary plan is also a very controversial plan. New mlm companies adapted this plan, but didn't stay within the guidelines of the law.
Once these companies were pointed out, it gave them bad press coverage. This in turn gave legitimate mlm companies a bad name.
But the problem was that companies and associates focused more on the binary plan itself. This atmosphere created what some called a "money game."
The binary started with a bogus gold coin program. And it was also used for travel memberships, overpriced prepaid phone cards, or travel certificates.
These items are high priced, one time purchases that offered many legal challenges in the late 1990's.
Please make sure you follow the law. Do not allow yourself to fall into a trap just to make a quick buck.
Focus on your company's product and let the pay plan take care of itself.
The largest negative against this compensation plan is the history of schemes misusing this plan.
Network marketing opportunities are a great way to exit the rat race. Please look at the entire picture of the company not just the pay plan itself.
The binary pay plan can pay huge, but only if you work the system correctly. When a business center has reached its maximum earning potential, start a new business center.
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