Binary Pay Plan: Three Great Things about a Binary Compensation Plan

by Chuck
(MD)

The binary pay plan is one of the most common MLM Compensation plans in existence. Lots of different network marketing companies adopt this compensation plan because of its simplicity. In this short article, I want to discuss three great things that I like about a binary pay plan. Here they are:

1. The Power of 2: What I like most about the binary pay plan is the power of 2 concept. This means that people need to simply sponsor two new distributors to take advantage of the plan. After that, they need to help those people sponsor 2, and keep repeating that process for infinite levels in their organization.

2. Simplicity: The binary pay plan is really simple to understand and easy to explain to others. Many compensation plans are very complex and difficult to explain. Although there are different types of binary pay plans, most of them follow a similar concept. And most are really easy to understand.

3. Payout: If you structure your organization the right way, you can make a lot of money with the binary pay plan. Typically, companies pay commissions off the smaller leg in your organization. That means if you have one leg with 1500 volume points and your other leg has 2000 volume points, you would earn commissions off the 1500 volume points. Does that make sense? Your key to success with the binary pay plan is to “balance” your organization, so both legs have approximately the same amount of volume.

Obviously, the binary pay plan isn’t the perfect compensation plan. In my opinion, there is no perfect compensation plan. But this pay plan is fair to most distributors.

Please know that most distributors won’t earn much money at all with this pay plan. That’s because they don’t follow the steps to success and structure their organization the right way. Or they don’t sponsor anyone into their organization. However, the distributors that do the work and build a large organization earn a nice income with the binary pay plan.