Binary MLM Compensation Plan

Multi Level Marketing, often called MLM, is a basic system that you must pay to join. Once you have joined, you will receive a cash reward for each person that you refer. You will also be paid for each person that your referral refers, and everyone else that is recruited by someone under you. The group of people that is under you is called your “down line”. MLM presents itself in many different ways, but in this article I am going to talk specifically about Binary MLM.

Binary MLM is based on a matrix of two. This means that you can only sign up or recruit 2 people into your first level down line. If you plan to make money with this type of MLM, you should choose those 2 people carefully, as your profit margin depends entirely on your down line being active. You should also try to balance your down lines as well as possible, as you don’t want uneven or lopsided “legs”.

Binary MLM plans are different from normal forced matrix systems in that there is no difference in levels. By this I mean that when someone joins in your down line, you will receive a set cash amount. Normal matrix systems pay different amounts for different levels, while a Binary MLM pays a pre-designated amount for each person, regardless of how many levels down they are from you.

The only real foreseeable problem with this system is the fact that since you can only have two people in your first level, you will often end up with a lopsided down line. These binary plans payout based on the volume of your weaker referral, or “leg”. That means that if you recruit 2 people and only one of them actively promotes and builds a down line, you will not make much money.

You will always be paid for the people who join in the weaker of your two legs. You are usually paid when the weaker leg produces a certain amount of revenue. This means that if one of your legs is inactive, you will not receive much money. Only if your down line is even will you profit well from a binary system.

If you want to be successful in this type of system, it is a good idea to join in a group, or to personally select your first level referrals. These plans do use the spillover, which basically means you will receive referrals from your up line (the person that referred you). However, you will only benefit from spillover if your legs are fairly even. The spillover will go to only one leg, so if you have one inactive leg and one active one, you will not benefit from the spillover.

When you join a Binary MLM system, you will learn quickly that, unlike matrix systems, these binary systems focus on quality, as opposed to quantity. A quality down line, with 2 relatively even legs, will benefit you greatly. But if your down line is lopsided, you will not make much.