MLM Binary Compensation Plans
So you think you are ready to start your new network marketing business and you have done your homework.
You aren’t alone. MLM compensation plans are some the most difficult things on the planet to comprehend, unless you’ve a degree in mathematics.
But fortunately, most mlm binary programs are quite easy to understand after you sit down and crunch the numbers.
So What is an MLM Binary Plan?
The word binary means two. So think in terms of 2.
When you sign up and begin building your new business your first goal will be to go out and find two folks who also need to work towards securing time and financial liberty.
After you sign these 2 people up they are going to be what is called your front line. Because you are working in a binary program you can only hire two people and those 2 folks can only induct 2 people each. That’s it. Only 2.
So now your business is composed of you and 2. Fred and Sally.
And in an ideal world both Fred and Sally would now sponsor 2 who sponsor 2 who sponsor two, etc, and everybody gets rich outside their wildest dreams. However unfortunately, we reside in real life and possibilities are Fred and Sally will not do to much of anything at all.
Your next step will be to recruit more people, but because you can only have 2 folk on your front line, the following 2 recruits have to either go under Dick or Jane or one can go under each. It’s down to you to keep the legs balanced.
What’s Binary Spillover?
So now your new recruits are under Mary or Jane ( or both ), implying that Mary and Jane got what’s called binary spillover or up line spillover. In effect you have aided Mary and Jane in building the first leg of their business based on your inducting efforts. One of the most important benefits of the MLM binary plan is if you have folk above you, i.e, an active upline, they can really help you to build your part of the business.
You do not stop there, you still need to continue to sponsor and hire a lot of folks and keep balancing the two legs of the plan with the right folks because most plans only pay a commission when the product volumes balance.
You can enjoy a large amount of spillover, but you’ll only be compensated when you keep adding new folks.
So though you thought you were prepared to start your business this is another side that you need to look at. It’s not a matter of MLM binary being the right system for you, the question is how are you going to market your business to build your downline?
You’ve got to have a plan to promote your products and also your chance to others to build your business.
One question is should you use an online lead generation system and learn attraction promoting so as to build your business faster and get more profitable?
What is your promotion budget?
Are you also aware that in MLM you’ll be looked up to as a leader by your downline, they are going to expect you to assist them with their business and to achieve their goals. Many individuals make plenty of money in the MLM business, so actually it’s not the compensation plan that’s vital.
Your principal concern will be how to build your business efficiently and speedily.