Binary Compensation Plans

September 30, 2009 by Daniel Mcgonagle
Filed under: Compensation Plans

A lot of network marketers I know aren’t big fans of the binary because of how easily your team strength gets diluted.

Here’s an example of what a Binary Compensation Plan looks like:

Binary Compensation Plan 2

This should give you an idea of how easy it is to have a very widespread organization that goes nowhere fast. now, I’m not say the binary compensation is all bad, because it’s not.

However, it’s the hybrid binary compensation plans that make network marketers happy as can be. No compensation plan is perfect and every single comp. plan that has been done already has an inherent weakness somewhere wthin it.

The Major flaw with a pure binary compensation plan:

Your organization get spread out very quickly, and pretty soon you have a team that’s all chiefs and no Indians.

Binary Compensation Plans

This means you’re stacked pretty good on your immediate downline level but there’s really not going to be any spillover benefits for them when you have to balance out what you’re doing amongst all your lieutenants, chiefs, captains, generals etc….

However, this is better than having to build 5 people wide before building downward to further strengthen the overall team effort and success ratio. Like I said no compensation plan is perfect, and they all have their weaknesses.