So you believe you’re prepared to start your new network marketing business and you’ve done your homework. Then when someone talks with you about the compensation plan they mention the term mlm binary and you scratch your head – what does this mean?
You are not the only one. Network marketing compensation plans look like they were written by maths PhD’s and appear to be surprisingly complicated. Though on the surface they may look difficult, but if you sit down with somebody who knows about them they are easy to figure out.
Here is what a Binary Plan is
As everyone knows binary means 2. So you just have to think of everything in pairs. One of the first things that you’re going to have to do when you start building your new business is to recruit 2 new people who also want to enjoy the financial freedom of MLM promoting.
You will sign these new people up and they become your front line. This is your personal line of support and because this is a binary system they can then go out and recruit two more folk each. No more. No less.
So now you have recruited two others into your front line, let’s call them Dick and Jane. If they follow the plan Dick and Jane can then go out and sponsor 2 more folks and so it goes on, and everybody gets rich and achieves their goals. Unfortunately Dick and Jane won’t be especially effective at MLM marketing and this occurs a lot .
The next step will be to sign up more folk, but because you can only have 2 folk on your front line, the following 2 sign ups have to either go under Dick or Jane or one can go under each. It’s your decision to keep the legs balanced.
What is 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 1st leg of their business based on your inducting efforts. One of the largest benefits of the MLM binary plan is if you have folks above you, i.e, an active upline, they can really assist you in building your part of the business.
You don’t stop there, you still have to continue to sponsor and induct a lot of folk and keep balancing the 2 legs of the plan with the right folk because most plans only pay a commission when the product volumes balance. You will enjoy a lot of spillover, but you’ll only be compensated when you keep adding new people.
So though you believed you were ready to start your business this is another side that you should look at. It isn’t a question 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 pimp your products and also your opportunity to others to build your business.
One question is should you use a web lead generation system and learn attraction selling to build your business faster and get more rewarding? What’s your advertising budget?
Are you also aware that in MLM you will be looked up to as a leader by your downline, they will expect you to assist them with their business and to hit their goals. Many folks make a lot of money in the MLM business, so actually it is not the compensation plan that’s critical. Your principal concern will be the right way to build your business quickly and effectively.
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Author: Robert David StrongThis author has published 5 articles so far.