MLM, The Binary Plan
The Binary is an interesting design for a Comp Plan. It usually has 2 “legs” that you can have “Business centers” in, and you have a volume requirement to get paid on each leg.
There is what is called “balancing”. in the Binary…you must balance the volume from each both A and B group to make sure you maximize your commissions. In the illustration above, the A group is the strong leg (or the giant leg) while the B group is called the weak leg (or the profit leg). A has more people than B (assume they all produce the same volume per person). B needs to find 2 more people in order for U to ‘balance’ hence maximizing U’s income.
The main advantage of this plan is spill over. Allow me to illustrate
U sponsors 2 friends. In a binary, the company limits each distributor to have a MAXIMUM of 2 people. A and B were previously recruited by U. U needs to ‘balance’ his group by helping B find 2 people. But let us assume that B is not actively building the business at the moment, so what does U do? He finds and sponsors 2 people HIMSELF and places both of them under B and they become B1 and B2. This is called SPILLOVER.
The advantage of spill over is that when everyone works as a team, the tree will fill very fast as all uplines and downlines work together to balance each other’s networks. It is also immune to the problems in unilevel or stairstep plans with downlines being too deep in the organization. A binary can be balance depending on which side the downline is in and not how deep.
The disadvantage however, is that this plan is particularly attractive to lazy people who don’t do any work and expect free handouts from their uplines. Imagine what will happen if everyone waits for their upline to place people under them? It doesn’t develop strength.
To your Network Marketing success,
The Dot Com Objectives Team
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The Breakaway This plan has been said to have become somewhat unpopular in the industry, as you could lose the business you build, once it gets to a certain level of success, and it “breaks ...
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