Network Marketing Success Tips
Should You Avoid MLM Binary Pay Plans?
Binary Compensation Plan
I’m amazed at the many types of MLM Compensation Plans that exist and the reasons that network marketers choose certain plans.
But, did they actually choose the plan? No, they did not! Most network marketers are being taken advantage of because they didn’t choose the plan.
They were simply asked to join a network marketing company with a multi-level marketing compensation plan by someone they know like and trust to some degree.
After all, the number one reason a person joins an MLM company is that they were asked to join. Yes, that’s it.
The number one reason that a person joins is that they are asked to.
Unfortunately, with a little bit on due diligence on their part they could avoid many of the MLM Pay Plan traps. MLM Compensation plans include matrix’s, Stairstep Breakaway’s, Binary’s, hybrids and off course Uni-level’s.
Uni-levels are widely considered to be the most fair for the network marketing companies and their distributors. Uni-levels have been proven to out preform all the others for profitability, ease of use and ability to understand.
Think of a network marketing companies that are well know, successful and have stood the test of time and you’ll find a great company with happy, healthy and wealthy distributors being paid by a Uni-level Compensation Plan.
Fifteen Reasons To Avoid Binary Pay Plans!
1) Binary Plans Do Not Last – There’s no good reason to do all the hard front end work when historically the company will not even exist.
Binary companies are here today, gone tomorrow.
2) Binary Regulatory Problems – Binaries have had many problems with regulators, often drawing huge fines or settlements.
In a few countries they are illegal and often add a uni-level twist to attempt to make them legal.
These MLM Companies brag that they have special Hybrid pay plans with the best of both worlds. In reality they have the fairest of a Uni-level and the worst of a Binary.
They are complicated and difficult to understand at best. But it’s supposed to be good for you.
3) Network Marketing Is A Relationship Business – Binaries are often built anonymously through automated systems that do not lead to the development of personal relationships.
With out long term relationships there is no long term residual income. Network marketing is a teaching and mentoring business.
4) Binaries Bet Against Distributors – In a binary Pay plan, the company is betting against the distributors on the very premise of the binary compensation plan is that distributors do not qualify.
In fact, companies with binary pay plans live off of “breakage”, which is all the percentages written into a comp plan but not paid out because distributors do not qualify. This money is all kept by the company.
Even in cases where the binary company claims to pay out fully in its compensation plan, it caps maximum earnings throughout its genealogy tree, keeping the money to be partially distributed in large cash giveaways.
Some of the binary companies claim to pay out fully by earmarking amounts to be paid out later and this creates a rolling or revolving promise of a pay day, which keeps on working as long as there is a tremendous amount of growth and then collapses when there is the slightest drop in recruiting which eventually happens.
If most of the distributors were to qualify to get paid then the company would go out of business or the profits in the field would be so widely spread out that the appeal of a select few making large amounts of money would not exist.
5) Binary Spillover Control – In a binary compensation plan the so called leaders and big shots are building power legs as fast as possible. This field leadership is controlling spillover in a way to benefit them at the expense of their downline. Therefore spillover is an illusion or perhaps a myth at best.
Binaries pay out on your weak leg and not on your strong or power leg so by definition you do not build your success on the success of others, but you attempt to balance something that will naturally never be balanced.
6) Binaries Are Lop-sided – Lop-sided income structures and binaries are know to be associated with get rich quick schemes and even the payouts that favor the big hitters more than enough and at the expense of their downlines do not last in binary programs. Binaries pay plans use the factoring system which allows them to factor in changes in growth. When revenue trends change all of a sudden then the incomes of big hitters can be drastically reduced. Next, they leave with their automated sponsoring system which in turn accelerates the downfall of the company.
7) Binaries Are Over Priced – Historically Binary Companies have sold over-priced services including but not limited to phone cards that gave 20 cents value on the dollar so in reality they were really just disguised money chains.
8) Binaries And Pareto’s Law – Real growth is based on Pareto’s Law and that is the 80/20 rule, which holds that only 20% of the people will do the work. Binaries claim to be able to get around this and even avoid it all together and that is why participants in binaries programs are often heard saying: “I almost made $26,953.00 last month.”
However, in reality that only made about $200.00. Next they say: “Wait until I balance next month!” Again, their chance is little to zero against an automated system building down one leg and a company that was designed to bet against them, with it’s own best interest from the beginning.
It’silly when you really think about it.
9) Binaries Are Mostly Hype – Most binary companies are built on hype, with huge cash giveaways in order to lure people in based on the greed factor. The product becomes an excuse. These companies often create copycat products of already existing and legitimate products and by doing this they often taint legitimate network marketing companies.
10) Binary Plans Give MLM A Bad Name – They do so by often using automated sponsoring systems which are also used by legitimate organizations within the confines of a sound compensation plan. The good distributors suffer from guilt by association.
11) Binaries Mislead You – Binaries companies lead you to purchase multiple business centers in order to maximize your earnings potential. The truth is that this can lead to front end loading products according to regulators, this means purchasing more of the same product that you and your family can reasonably consume within a certain period.
Both State Attorney Generals as well as Federal Trade commission Regulators are concerned that this is a borderline, and often outright infringement on anti-pyramid laws. I call it: “Buy A Lot And Let It Rot!” Bewaring of companies that encourage you to buy thousands of dollars for products for more pay.
12) Binaries Change You – They actually change what they consider to be a distributor. More than 90% of their distributor base according to their own invented criteria are not distributors.
This makes it more difficult to be considered a distributor and by adding more requirements such as minimum volume, activity levels, sponsored someone, or even already having received a commission check based on downline production.
Therefore, binaries consider more than 90% of the people who signed a distributor application and agreement with them as wholesale customers and that is how binaries misrepresent average earnings. It’s really misleading when the company is altering the results up to 90%.
13) Binaries Rarely Pay – Most binaries show that only a handful make considerable income. The truth is that north of 98% of distributors in binaries spend more money every month if any at all compared to what they pay in every month.
14) Binaries Have Caps – Do not join a company with a compensation plan that use the words “cap”, maximize your earnings”, and “you can make up to”. I’m ambitious and desire be able to earn all I want!
Binaries have income limitations and the ask you if $25,000 is enough per week and it sure sounds good until you’re there and then it’s not so hot! Off course if you still want to join a network marketing company with a binary compensation plan you’ll not likely need to worry about a cap on income.
15) Binaries Collapse – One binary company I knew grew to almost two billion in about eighteen months, and then collapsed to nothing within two months. This company left thousands of network marketers throughout the world with dashed hopes, and a nasty aftertaste of having been abused and taken advantage of.
False Hopes, Dreams And Exaggerated Claims!
Binaries Mix Lies With Truth
Beware of network marketing companies that market with false hopes, dreams and exaggerated claims. The network marketing company claims often state that you never have to talk to people, advertise, recruit, sell, buy, or do much of anything.
They just ask that you to join with your hard earned money and tell you that you’ll be rich. That is simply not true! Hey, if it was true? What do they need you for? That’s correct! Your money! That’s not how all network marketing companies work.
Right now I’m building a huge Network Marketing company with a Dynamically Compressed Uni-level compensation plan. You can learn more by clicking here!
Network Marketing And Residual Income
Network marketing opportunities were designed for people to build over a three to five year period of time, part time while building up a residual income to replace their full time income. Next, they are able to leave the insecurity of their job because they have full time income with part time hours.
I’ve found a Uni-level company with the highest payouts in the history of networking marketing and you can learn more by clicking here.
This allows freedom. Freedom doesn’t come without a price. Too many network marketing companies lie about what is required. Would you like to know what is required and the network marketing opportunity catch?
What Most Network Marketing Companies Will Never Tell You!
Network marketing requires working smart and simple telling the truth. It’s easier to tell the truth and work smart and hard. It’s not hard to work hard. You must sponsor new people into your organization and teach them how to market your network marketing opportunity and products.
All successful network marketing companies must sponsor new people. Joining a network marketing opportunity that can assist you with marketing and sponsoring is priceless because network marketing is a teaching and mentoring business.
You must teach people what to do and how to do it! Many network marketing companies simply tell you what to do. But, not how to do it.
Join one that has teachers and mentors that tell the truth. Plan on staying for several years and passing on the systems and knowledge you gain. Become the leader that you seek and over time you’ll build lifetime relationships along with a life time residual income.
Would you’d like to turn your yearly income into your monthly? GREAT! Don’t become a Jumper Junkie and use The Power Of One. If you want something you’ve never had, you must be prepared to do something you’ve never done.
Don’t Hope And Dream That It Will Be Done For You!
Don’t hope and dream that it will be done for you. It won’t! Don’t buy into the lies that claim someone will do it for you. They won’t! Too often I see good people join the network marketing companies that I’m warning you about.
Next, they start making the same lies because that is what they’re taught. Lying will not bring you the long term success you desire.
You’re in the wrong network marketing opportunity if you’ve been told that? Don’t stay to your detriment.
Make It Happen By Doing What Is Required!
Build your network marketing opportunity by doing what is required. Join one network marketing opportunity that has a product that makes our world a better place because you’re here to serve others.
Remember to earn the unnatural and enormous incomes you’ve heard about you’re going to have to use up all of your natural ability so that the supernatural can kick in.
The people who serve the most, make the most. Serve the people and the money will follow.
“When your desires are strong enough,
you will appear to possess superhuman powers to achieve.”
~ Napoleon Hill ~ Think and Grow Rich
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