In network marketing there are 4 major types of compensation plans. These are the Stairstep, Unilevel, Matrix and Binary plans. Let’s discuss how a binary compensation plan works.
Typically the Binary plan is a pay structure that’s based on the number two. Each level of your network marketing organization is composed of two people. Binary MLM is based on a matrix of two. This means that you can only sign up or recruit 2 people into your first level down line.
Of course there are a few advantages that distinguish the binary compensation plan from other MLM compensation models.
You Profit From the success of your up-line – Yes it’s true and this is known as the spillover, and can truly change the amount of residual income you get.
It offers a “Two to Infinity” Payout – the system offers you the ultimate opportunity to grow two fold. It thus offers what is referred to as the “two to infinity” payout.
It works best in fostering teamwork – the fact has been tested by the veteran MLM distributors, the binary plan is often viewed as a structure that best promotes teamwork, both for the up-line and down-line. Your up line helps you build one side of the leg – Within the binary system, your up-line will most usually help you build the other leg. In fact; the whole binary system is god damn interesting because half of your compensation can be made or developed by another entity. Therefore, all you need is to just build your side of the leg, and you collect double compensation. You dictate how many down-lines are placed on each of the two legs
It is also important to mention here, based on how exactly your MLM Company interprets the binary compensation system. In a binary compensation model, all members will benefit from all new members that are sponsored by their up-line in the same leg.
Needless to say you require cutting edge binary plan software to yield the maximum benefit from the plan whatsoever. The software need to be really easy as well as pretty basic to understand.