To the majority of network marketers, the compensation plan could be the driving force in their lives. Based upon your knowledge, or lack of knowledge of one’s company’s rules and regulations, you may actually LOSE money as you add people into your downline. Let’s look at the basics of the Binary Plan, in order to maximize your income based on your efforts, as you build your MLM business.
In network marketing you can find 4 major compensation plans; Stairstep, Unilevel, Matrix and Binary. The Binary Plan is obviously the simplest to understand, and widely accepted as the absolute most profitable for the marketer. It is based on the principle of 2. You have 2 groups of people called “legs “.As you bring people into your organization, you set them in either your left leg or your right leg. The length of each leg is generally unlimited.
The Power Leg:
Your legs receive names, as each plays in important role in your business. Your “outside” leg can be your power leg. It Is this leg where you had been added by you sponsor, and your upline may also be adding people, as they too are building 2 legs just like you. Many marketers find this leg grows faster, and is more powerful. Thus it is given the name “power leg “.
The Money Leg:
You inside leg is this leg you are 100% in charge of growing. With most plans you receive an additional benefit for adding several people, and they need to be balanced on both sides. As your upline is helping you build your power leg, it’s this leg where, as you begin to add on people, you start making money. the binary insider Thus it’s given the name “money leg “.
Pitfalls of Placement:
You must absolutely read and understand the terms and conditions of you compensation plans completely, especially the Binary Plan. You need to understand how many people you personally need to add to your legs for anyone extra bonuses. Many comp plans will pay commission on the shorter of the 2 legs, so balance listed here is most important. Also be cautious about those company specials where the terms and conditions specify how you will need to create you team in this time.