It seems the most misunderstood compensation plan in Network Marketing is – the Binary Plan. If operated properly, this plan is a classic example of a ‘people helping people’ program. I feel the Binary compensation system is the easiest system for anyone to build and develop. Here are some of the reasons I feel this way.

According to widely accepted statistics the average distributor sponsors 2.7 people. Clearly this fact alone has huge significance. In essence; it means the difference between success and failure for the majority of people who venture into this industry! In the Binary, you just build 2 legs or teams as Binary means 2. If distributors can just bring in 2 and teach those to do the same, they can achieve success.

Another BIG advantage to the Binary plan is the additional placements made by those who sponsor more than 2 distributors. After I’ve sponsored my first 2 distributors – all additional distributors I sponsor fall below my original 2 distributors – which in turn adds to their volume!

This generates a wonderful sense of excitement - which builds teamwork - which in turn feeds on itself as demonstrated by the incredible growth Binaries are known for.

A lot of other compensation plans require that you develop up to 5 or more team legs wide in order to earn from sales 5, 6 or 7 levels in depth. Most people would admit that building five teams requires significantly more work because you must splinter your focus, time, & energy among many teams rather than just two teams.

I personally know people in other plans who have worked like crazy to build their organization only to see the big money just out of reach because they were limited in the levels of depth they can benefit from. With the binary your volume is not limited to levels, so you are just as happy to place someone on your 100th level as you were your 1st.

The Binary compensation plan is not Multi-Level Marketing. That's because MLM plans usually pay based on a limited number of levels (typically 5-10). A Binary does not pay you on levels; it pays you on total sales volume of everyone in your two legs/team up to a predetermined cap set by the company. Levels don’t matter, only sales volume does.

In the Binary plan there is a fairer dispersion of income. Since successful upline distributors place new distributors in their downline, Sales Volume is distributed to entire lines of people. This means that the commissions being paid on volume end up being spread out more evenly among entire groups of distributors.

The current binary trend is that companies do not require an exact balance of the two legs/teams, but pay on the sales volume on a 1/3 – 2/3 split of volume. This means that you’ll get paid for the full amount if you have for example, 1000 points left sales volume, 2,000 points right sales volume (or vice versa). If one of your 2 legs sales volume grows much faster than the other – Great, now you only have 1 leg to focus on. To receive a commission most companies, regardless of their marketing plan structure, require the distributor to make a minimum purchase each month of a product or service

Another thing I love about Binaries is that all the sales volume that is generated thru my organization remains intact until I qualify to receive it. This is like money in the bank! This is a world different than every Multi-Level company I'm aware of which flushes that volume away at the end of each month.

I’ve worked a good variety of the ‘other plans’ and in my experience the Binary Plan allows people to work together in a much more synergistic manner; which pays off in numerous ways – including higher incomes for the greatest number of Distributors.