MLM Vs. Binary Compensation

Updated on June 07, 2008
T.H. asks from Manteno, IL
4 answers

Does anyone on here actually understand how they get paid working with a MLM or Binary company? What are the main differences? How much do you have to sell to make a 6 figure ongoing income? Please only respond if you are 110% positive you have the correct answers. Trying to understand if people are making an emotional buy/decision or if it is truly based on profits/facts. Thanks, T.

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answers from Chicago on

Following is a great article entitled The Beauty Of The Binary Pay Plan by Michael Brymer. If you like what you read, I'd like to tell you about a brand new french skin care company, Votre Vu that will launch late spring/early summer that has a binary pay plan. If you have more questions, I'd be happy to try to answer them as well.

There are lots of Multilevel or Network Marketing Plans. Over the years I had often heard of MLM programs with a Binary Pay Plan but at those times I had mistaken impressions of the Binary Pay Plan which unfortunately stopped me from joining those MLM programs. Talk of not profiting from the longer leg of a Binary Plan had unfortunately closed my eyes and ears to The Beauty of the Binary Pay Plan.
MLM program pay plans are a bit like girlfriends or boyfriends. You believe that the one you have is the best.
Whatever your preconceptions are of a Binary Pay Plan are, you will want a Binary Pay Plan MLM program after reading this article.
I’m going to show you how to take extreme advantage of a Binary Pay Plan so get ready for extreme enlightenment. Like all my articles this will also contain hands on nitty gritty things to do that actually work and will change and excite you for the better.
In most MLM programs your upline members are very helpful but usually don’t go as far as to place members under you to improve your profit line. They may step in initially to get you on your feet and off to a good start for both you and them, but that’s basically where it stops.
It is often said in MLM that “You make money on your downline and not on your upline so look after your downline”. In most MLM pay plans this is true, but not in a Binary Pay Plan because your upline has no choice but to at the least place half of his new members under you if not all of them!
In a Matrix plan you can also get members from your upline, which is often called “Spill Over”. In a Matrix your upline member may have five people on his first level which means that you may only get one fifth (1/5) of any spill if you happen to be on his first level, less if you are on his second and so-forth.
A Binary Pay Plan has only two legs, thus the Bi in Binary, meaning two. Every new member is placed one under the other. In a Binary Pay Plan you will find yourself in one of your uplines two legs. Depending on the person. the two legs are often called the “Right and left leg” or “Longer and shorter leg” or “Stronger and weaker leg”.
The “Longer” or “Stronger” leg will be the leg you joined into and It will always be longer and stronger because of all the people above you who are constantly putting new members under you. You are getting free paying members put under you! This is unheard of or vary rarely seen in most other MLM pay plans.
The shorter or weaker leg is the new leg you start. You build this leg to cash in on the free longer stronger leg you originally joined. Apart from any required placements, rarely would you have to place members into your stronger leg, so everyone you recruit is placed into your new leg, your shorter leg. Your job is to build just one leg placing every new member One Under The Other benefiting all members in that leg.
Depending on which MLM Binary Program you join will dictate how many members you need to place in each of the two legs to receive group commission payments.
For example; the MLM program I am in says that I must sponsor one member into my left leg and one member into my right leg to qualify for group commissions. So my mission is to personally sponsor two (2) members, one into my original leg and one into my new leg. Royalty or group commissions are paid on “groups of members”.
Here is my group commission example: For every three members in my short leg I get paid on six members in my long leg. So if I have 300 members in my short leg then I will be paid on 600 members in my long leg. In most other programs I would only be paid on the 300 members I and my members brought in, if that !
The beauty of the binary program lies heavily in the fact that;
1. You only need to sponsor two people to qualify for group commissions.
2. You are paid on twice as many people as the group you build.
3. You only have to build one leg.
4. Every member you sponsor is placed under all the other members in the leg you are building.
5. All members benefit from all new members sponsored by all upline members in that leg.
6. The above points are easy to explain and powerful points to recruit new and experienced MLM members.
Apart from group commissions and depending on the program you join, you can receive a great bonus on each and every person you personally sponsor.
With current internet automation you can have every person you sponsor automatically placed in either your longer or shorter leg or have placement automatically alternated evenly between the two legs. As your new leg grows it will pick up incredible speed like a small snow ball rolling down a snow covered mountain.
In a Binary Pay Plan I can tell my prospects that when they join I will be placing all future members I sponsor under them, members that they will profit on. Can you say this with any other MLM and do it?
A Binary Pay Plan lets you help others while helping yourself.

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answers from Chicago on

Your question is too broad. The best way to compare comp plans of two different company types and to determine how to generate a 6 figure income is to take each company you're interested in review them piece by piece. From there decide which company you believe you can be successful with. Which company provides you with residual income that can last a lifetime, not just a few months or a hit or miss type income.

Additionally, when people question MLM my first question to them is to define MLM. Most describe "structure" the same structure that is found in government, corp america, religion, etc. Structure is not MLM. MLM is a business model that I can break down for you if you'd like to talk. [Way too much to do via a post.]

I'd love to have you evaluate my business. It's not MLM or Binary. It takes only 30 minutes. There's a webcast/business overview tonight at 9pm if you're interested. No pressure...just evaluate for you.




answers from Bloomington on

The Binary compensation plans are considered one of the lowest payout in the MLM industry. It is very hard to qualify for weekly checks. This plan benefits the company more than the distributor.

I am with Neways International.. 20 year old - privately owned -International Company. 700 Million in sales in 2006.

My purpose here is just to give you a little flavor of how your commissions would be calculated as you grow your Neways business.

I will say right up front, there are simpler pay plans in the network marketing industry but simple pay plans simply don’t pay as much. The reason is, well, simple. There are many different types of distributors with differing needs. New distributors need a quick start. Part-time distributors need attainable qualification targets, Full-time distributors need stable, full-time income potential. It is impossible to accommodate all these audiences with a simplistic “one size fits all” pay plan.

So Neways developed what is known as the “Hybrid” Pay Plan. It combines the best features of TWO of the most popular pay plans to achieve two key objectives:

• Allow new distributors to start earning money quickly.
• Give distributors the opportunity to build real wealth and long term security by achieving reasonable and very attainable goals.

Neways has approached its Pay Plan with the same innovation and creativity it applied to the development of its unique product line. The result is a fair, balanced plan, which pays new distributors fast, yet builds strong leadership at depth, which anchors your organization for maximum long-term income.

We consider the business opportunity to be our best product. Our outstanding compensation plan pays more than 50% of commissionable volume back to our distributors, allowing them to earn generous commissions right away. These commissions are paid through two Profit Centers called Multiplex Profit Center and Affinity Profit Center.

The Multiplex Profit Center details how a distributor is paid on the first 100 Personal Volume (PV) spent by individual customers and distributors in their organization. A distributor's personal volume determines the percentage of commission they are eligible to earn on their downline distributors. So the greater your commitment level, the greater your rebate.

The Affinity Profit Center pays on the Personal Volume (PV) greater than $100, including a distributor's own purchases over $100 PV per month. Affinity commissions can be earned in two different sections: Group Development and Executive Leadership Bonuses.

With many compensation plans, a singular distributor occupies a paid level. With Neways through a feature known as compression, we allow our distributors to achieve optimal commissions in both the Multiplex and Affinity Profit Centers.

Neways has also incorporated two profit sharing bonuses and an amazing car bonus and office program to reward the hard work and dedication of distributors who are building and maintaining large organizations.

Neways also has an Executive Leadership Transfer Program (ELTP) designed to bring experienced leaders from other network companies into Neways and provide a way for new Neways Distributors to join Neways at a rank equivalent to that achieved in their previous business. Benefits:

(1) Instant rank advancement to Executive
(2) New distributor is immediately eligible to earn commission on their downline

Check out this website for more information.
Visit our corporate website at



answers from Chicago on

I work from Home with the Nations #1 Health Benefits Company and we are MLM company. We have one of the BEST compensation plans out there. I have never heard of a Binary Company but I can tell you from personal experience as a mother of 3 kids under the age of 5 that I love my company and our compensation plan. If you would like more information about our company please feel free to request a interview with me at or email me at [email protected] Best of Luck!

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