What Are Binary Compensation Plans?

Binary compensation plans generally only allows you to sponsor two people as your immediate down line in your business.

This can act as a very limiting factor when it comes to you wanting to grow your business.

What if the two people you sponsored decide not to sponsor or can’t find two other people to recruit into the company?

The volume of product being consumed under you will be very low which means the amount you get paid suffers too.

I believe that this variation of MLM pay plan would only be really effective if everyone who is sponsored was a very active and productive salesperson.

In reality this isn’t going to happen, it will be extremely difficult to find recruits who will be extraordinary sales people and also be able to move a lot of product.

This compensation plan means that it won’t really benefit distributors where the majority of their team are only using the products for self consumption.

The only exception would if you have an enormous amount of people underneath you or if the products are insanely expensive.

Another thing you may find is that most companies will generally pay you based on the performance of the weaker leg.

This is going to put you in a position where you will have to put pressure on the weaker leg to catch up to your other immediate person in your down line. I’m sure you don’t want to be someone who has to do that.

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