As stated in Part 1 of this article series, there are many different mlm compensation plans being utilized by not only startups in the industry but also the top mlm companies as well. There really is no standard per se — it more or less comes down to the goals of the company either short term or long term.
The next compensation plan I’d like to discuss is the Binary. This is a variation in a sense of the Matrix, in that a Binary only allows you to place 2 people on your first level. Everyone else that comes into the program, either from your efforts or those of your upline support team, go below the original 2 people. Therefore, you only need to focus on building 2 legs in your business, often called the Left leg and Right leg.
Again, on the surface it sounds pretty attractive. However, let’s drill down a bit deeper.
The Truth on Binary Compensation Plans
September 20, 2007 by Ty | 1 Comment
In Network Marketing Compensation
Raymond Khor on October 17th, 2008 at 7:19 am
Can you please teach me the fomula of how to calculate the binary pay out against any new products? If I want to introduce a new product into the binary plan, what is the fumula to calculate, Cost of products X how many % recommended to sell and how many Points Value to be given. I believe there must be a fomula or a book which teaches us on this calculation. Please advise where and what is the title of the book where I can buy and learn from it. Thanking you in advance!!!