Prof. Josiah Go of DSA Phillipines:
There are 3 common reasons why the binary (MLM) plans are quite attractive to both distributors and companies:
1. The “spillover” concept attracts new distributors because technically, they can receive commissions by sponsoring only two distributors and let uplines (those who signed up earlier) do the “spillover” for them.
2. Binary plans are quite simple to understand. This allows distributors to duplicate their effort easier, a necessary tool to succeed in network/multilevel marketing.
3. Binary plan offers fast-paced growth opportunities, which attract the segment of our population who wish to “get-rich-quick”.
It is said that there are only two types of motivation — greed or service to humanity. Binary offers a potentially quick way to make money while providing a “service” that allows recruits to earn from the same method. Given the above, it is understandable that more and more companies have adopted the binary compensation method to attract new distributors.
















Ted on May 25th, 2006 at 3:49 pm
Is there a simple formula for calculating the maximum cycle bonus payable in a Binary when you know how much is going in per sale, and how many sales per cycle?
Thank you
Ted
Ty on May 25th, 2006 at 4:24 pm
Usually a company determines the cycle bonus by their own set percentages devoted to the bonus.
Let’s say that a company devotes x % to the cycle bonus. They then divide that amount by the number of cycles and presto…you have your cycle bonus $ amount. Since they use a % of sales, the cycle amount can stay fairly constant.
Roger A Stockburger on July 9th, 2006 at 12:16 pm
I could not get past the 15% level with Amway, and Mannatech systems did not correspond with the flipchart - potential annual income $aud 15′000 - national distributor, 30+30 people each purchasing 100PPV from product sales, I had 42+36 people, average 125PPV and all I was earning was about $70 per month in addition to the sign-up bonuses ($240 for an all-star recruit ($1375), or $70 for a master recruitment ($510).
USANA has a good system, although most find the products too expensive, as with Mannatech’s glyconutrients.
Wish they could make their products more affordable to most people.
Then a company called M2Cglobal started up. For the first time I could put in effort and see money come in that matched what the documentation said you would earn. Simple, no smoke and mirrors. Made more in 3 months than in mannatech in 18 months
M2Cglobal for example has a binary system that pays to infinite depth and the commission stays the same. A maximum payout cap of $usd52′000 per week and a max. of 60% of commissionable sales volume is paid out to distributors.
The product is an energy nutrition drink that contains no stimulants, quite easy to sell/promote, a $usd39.50 purchase, 30 servings (sachets) generates 25BV. Each time there’s 240 BV on each of the 2 sides, a $us50 cycle is generated (equals 10% commission).
Ben on November 27th, 2006 at 7:19 pm
Hey Roger,
Great info about M2global. I’ve tried Herbalife and Mannatech. Currently with Mannatec - for the past 13 months.
Also found that people find Mannatech Glyconutrients too expensive.
Tell me how can one join M2Cglobal. They name suggests that’s it’s international. Could you email me details about M2Cglobal.
You never know you may have found yourself a recruit.
Dan Cardillo on December 7th, 2006 at 10:37 am
We were going to change our comp plan from a 5 wide by 7 deep to 2 wide 16 to 20 down. We are thinking of paying in tiers especially on the residual. Are backbone is eBay. After reading these posts I think the way to go is the 2 wide. Thanks
Jean on December 21st, 2006 at 7:58 am
New to this blog, I am commenting on Dan Cardillo’s remarks. I believe 2 wide makes more sense and I also have experienced why. People have a vested interested more often than not, with downline being placed under them, and also, I have re-entered in my group and some of my downline have become my upline and are happy I did re-enter. Becuase the each business is capped, in order to capture more volume, re-entry is available and since there are no breakaways, you are secure in helping downline succeed.
Jean
rampagesr on December 21st, 2006 at 9:20 am
Anthony on February 13th, 2007 at 6:25 pm
In responce to rampagesr, guess what? The failure rate is about the same for traditional new start up businesses too. The difference is it can cost thousands, your home, your livelyhood and your marriage if you try ‘traditional’ business and fail.
I agree about the high product prices though…
Roger on September 24th, 2007 at 11:24 am
Sorry rampagesr and Anthony, not all companies are overpriced as you describe. Ours sold their training products at the same price for 9 years before changing marketing plans to MLM. We’ve operated without a price increase for the last 2 yrs as an MLM. Product prices are roughly 1/2 to 1/3 what you would pay elsewhere. We have no product purchases to make each month either though we do have a fee every month. Of course every franchised restaurant or business out there has a fee of some kind.
Shaikh Izaj Ahmed on November 1st, 2007 at 6:31 am
Only RMP Infotec Pvt Ltd will make you earn real money without hard efforts. Its a binary plan in india. By Just Purchasing a product which is also available in Market in the same rate will make you join. For Further Details Contact : +919343241417
narayan prasad on February 8th, 2008 at 9:36 am
my friend joined Chennai based mlm company called rmp infotec pvt ltd buying product of 6500 rupees.
he says, if i join and work just to recruit 2 members down line( in first level), and help to my new members to keep the chain grow, i will get ( weekly calculated) compensation of rs 1000 for a pair ( of left and right balanced )from my left and right side of new members we recruits for next 8 level and maximum 130000 rupees for week ( that means only 130 pairs are accountable if more pairs recruited)
i have few questions unanswered …
before that please read the facts & figures nobody wants to discus . ….if I am eligible to get compensation of 1000 rupees from pairs ( rs 500 from each member ?) of downline upto 8th level, then from my payment too rupees 500 has to be distributed all the upline sponsors upto 8 the level, so rs 4000 (500 x 8 = rs 4000) has been distributed to the upline sponsors. Then the company has its own bites too, business profit / share at least 20% ( minimum of rs 1000). It means company is investing only 1000 or 1500 on product of rs 6500 package.
1) if the products is worth of the payment we make( at the time of joining), then how can company able to pay the compensation upto 8th level (rs 4000 ) of the upline sponsors. ?
2) if it’s not true , the cost of the product package of rs 6500 is only rs 1000 or 1500, is it fair?
3) Achievers say, I made this much money , he made that much amount.. just by introducing members downline …is truly a money chain.
narayan prasad
mumbai