| Why most network marketers |
| struggle in binary compensation plans... |
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The binary compensation plans is a very attractive compensation structure for newcomers to the field of network marketing. Binaries are easy to understand. Newcomers are sold on the idea that their up-line can only place people in one of two places and thus a new person's business will be "fed" from above. If you are one of the lucky people to be placed on a very successful up-line's "power leg", then in reality you only have to work one leg. Unfortunately, many people do not end up in this situation and that is where the trouble begins. Binary MLM compensation plans pay out a percentage based on the total volume on the lesser (least profitable) leg. You do not get paid on your greater leg. The company keeps all that money. So let us say that you end up on someone's inside leg. What that means is that no one from above you will place anyone on that leg but the person who enrolled you. If your enroller is not actively and successfully growing his or her business, you will receive no people place below low from anyone but yourself. All those in network marketing know that successful businesses are built by building a good, strong down-line, not relying on an up-line. But here is the problem in a binary. If you have to build both your legs on your own, you go out and start recruiting people. You alternate where you place them, in order to keep your two legs balanced. In binary plans, balance is crucial. After a few month you've placed ten people on your right leg and 14 on you left leg. Of these, seven on the right and nine on the left are starting to build their businesses. Your network is growing. Things are relatively balanced. You're starting to receive a small residual income. Then you get lucky and enroll Lisa on your right leg. Lisa has been in the network marketing industry for 25 years. You are excited. Lisa's business takes off like gangbusters!! In a few months you have over $100,000 worth of volume on your right leg. Your left leg is still doing OK, but you only have $12,000 worth of volume there. If your company pays out 8% of your lesser leg, then you will receive 8% if $12,000. $960. Since your company does not have to pay you anything on your right leg, they keep that money. Binary plans sound great. They are easy to understand. They make people feel like they are working as part of a team. It's all good until your hard work ends up benefitting the company instead of benefitting you! |
There is a better way to go! Compensation plans have evolved a great deal since the beginning of network marketing. The latest type of compensation plan is called a Straight Line Forced Matrix.
With this plan you are paid for any volume that happens underneath you. The computer calculates every purchase of product made by every person in below you...whether you have one, two, three or more legs. As you move up the line distributors are paid as deep as they have qualified for. As you move up in the ranking you are paid on more levels. Everything is dynamically compressed from the bottom up. This dynamically compressed forced matrix plan is the cutting edge of network marketing compensation plans. Coupled with other bonuses for beginners, plus matching bonuses and rank bonuses and the sky is the limit. This type of plan is inherently more fair to its distributors that any other plan in the industry, particularly in comparison to binaries. Behind the scenes is a computer run matrix a powerful software program forcing residual income to happen in a manner never possible with a Binary or other types of compensation plans, quite a beautiful thing. Up until now there has been no company willing to part with the amount of revenue this compensation plan would provide to its distributors, however a new functional beverage company Mandura™ , has embraced and implemented the Straight Line Forced Matrix. The company has in just a few months seen exponential growth and is being watched very closely by many network marketing professionals all across the country.
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