How I Created A Multiple Six-Figure Business From Home Review MLM Binary Compensation Plans – The Good, Bad and Ugly

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MLM Binary Compensation Plans – The Good, Bad and Ugly

You have done your due diligence and are almost ready to take the plunge and start your own network marketing business. Then you heard the words “MLM binary” and, while you nodded like you understand exactly what your potential sponsor was saying,you’re you really heard was “it’s the best” and “you can makes loads of money,” and the rest of the conversation was so confusing it could have been in Chinese.

You are not alone. MLM compensation plans are some the most difficult things on the planet to comprehend, unless you have a degree in mathematics. But you don’t, you just want to get in on the ground floor of a successful MLM company.

MLM Binary Compensation Plan Explained

The word binary means two. So think in terms of two. When you sign up and start building your new business your first goal will be to go out and find two people who also want to work towards securing time and financial freedom.

You sign them up and place them on what is called your front line. Your personal line of sponsorship and, because we are working a MLM binary program, you and everyone else in the business is only allowed to have a maximum of two people on their front line. Two. Just two.

So now your business consists of you and two. Fred and Sally. And in an ideal world both Fred and Sally would now sponsor two who sponsor two who sponsor two, etc., and everyone gets rich beyond their wildest dreams. But, unfortunately, we live in the real world and chances are Fred and Sally won’t do anything whatsoever. So you need to go find a few more people and since you are only allowed to have a total of two people on your front link, you will have to place these new recruits UNDER either Fred or Sally.

MLM Binary Spillover

When you dropped your new recruits into the downlines of Fred and Mary, they received upline spillover. In other words, you have helped them build one side of their business based on your efforts. And this is one of the huge benefits of the MLM binary compensation plan – the idea that, if you have an active upline, they might actually help you build half of your business.

The challenge is you will still need to sponsor and recruit a good number of people and place them on the other side of your business to “balance” the two legs because most plans only pay a commission when the product volumes balance. So while you might enjoy some massive spillover – you’ll only get paid when you also add new people to your business.

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