You have checked everything out and you believe you are almost ready to start your MLM or network marketing business. But when they were talking about compensation the phrase “MLM binary” came up and although you attempted to look intelligent you hadn’t got any idea what it meant.

You are not the only one. Multi-level marketing compensation plans look like they were written by maths PhD’s and seem to be exceptionally complex. Although on the surface they may look complicated, but if you sit down with someone who knows about them they’re easy to figure out.

MLM Binary Compensation Plan Explained

As we all know binary means two. So in this plan everything comprises of 2. When you begin your new business part of that business will be to find folks who will wish to join your opportunity, and you will go out and find those 2 folks at first.

After you sign these two folks up they are going to be what’s called your front line. As you are working in a binary programme you can only hire two folks and those 2 folk can only induct two folk each. That is it. No more than 2.

So now your business is composed of you and two. Fred and Sally.

And in an ideal world both Fred and Sally would now sponsor 2 who sponsor two who sponsor 2, etc, and everyone gets rich outside their most extravagant dreams. Unfortunately, we live in the actual world and chances are Fred and Sally won’t do to much of anything at all.

Your next move will be to signup more folk, but as you can only have 2 people on your front line, the subsequent 2 recruits have to either go under Dick or Jane or one can go under each. It’s down to you to keep the legs balanced.

MLM Binary Spillover

When you dropped your new sign ups into the downlines of Fred and Mary, they received upline spillover.

In other words, you have helped them build one side of their business based on your efforts. And this is one of the great benefits of the MLM binary compensation plan – the concept, if you have an active upline, they would actually aid you in building 1/2 your business.

The thing with an MLM binary system is that you’ve got to continue to recruit folks and put them on the other side of your business so that the 2 legs of the binary system balance because most plans will only pay you a commission if the business volumes basically balance. So you could enjoy some extremely big spillover, but you’ll only get paid when you start to add new folk to your business.

So though you presumed you were ready to start your business this is another side that you need to look at. It’s not an issue of MLM binary being the right system for you, the question is how are you going to push your business to build your downline?

You’ve got to have a plan to promote your products and also your chance to others to build your business.

One question is should you use an online lead generation system and learn attraction promoting in order to build your business faster and get more rewarding?

What’s your promotion budget?

How are you going to convince people you are the upline leader they are looking for to help them reach their dreams and goals?

These are the most important questions, actually, because if any person has made money through a mlm binary programme ( and many have ) then it isn’t the comp plan that is in question. The question is, what will you do to build your business?