What is an MLM Binary Plan?

By Jeromy Michaels


So you believe you are prepared to start your new network marketing business and you have done your homework. Then when someone speaks to you about the compensation plan they mention the term MLM binary and you scratch your head - what does this mean?

You're not the only one to be confused. Most MLM compensation plans are very hard to understand unless you happen to be good at math. MLM binary programs, thankfully , are a few of the easiest to appreciate.

So What is an MLM Binary Plan?

As everyone knows binary means two. So you just have to consider everything in pairs. One of the first things that you're going to have to do when you begin building your new business is to recruit 2 new folks who also need 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 sponsorship and because this is a binary system they can then go out and hire two more people each. No more. No less.

So now you have hired 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 is going on, and everyone gets rich and achieves their goals. Sadly Dick and Jane won't be especially effective at MLM promoting and this happens rather a lot.

Your next move will be to signup more folks, but as you can only have 2 folk on your front line, the next two sign ups have to either go under Dick or Jane or one can go under each. It's up to you to keep the legs balanced.

Now what is Binary Spillover?

Your two new recruits went into the downlines of Dick and Jane and that is simply what binary spillover means. You have helped them build their business by giving them the 1st folk in their downline. This is one of the big advantages of the MLM binary plan and if you have got an active up line, this is going to be going down all of the time and may help you to build your side of the business.

You don't stop there, you still need to continue to sponsor and induct lots of folk and keep balancing the 2 legs of the plan with the right people because most plans only pay a commission when the product volumes balance. You can enjoy lots of spillover, but you'll only be compensated when you keep adding new folk.

So though you thought you were prepared to start your business this is another side that you must look at. It's not an issue of MLM binary being the right system for you, the issue is how are you going to plug your business to build your downline? You must have a plan to pimp your products and also your opportunity to others to build your business.

One question is should you use an internet lead generation system and learn attraction marketing so as to build your business quicker and get more profitable? What's your marketing budget?

Are you also aware of the fact that in MLM you will be looked up to as a leader by your downline, they are going to expect you to help them with their business and to hit their goals. Many individuals make plenty of money in the MLM business, so actually it's not the compensation plan that's important. Your main concern will be the right way to build your business efficiently and speedily.




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