An Explanation of the Binary Compensation Plan in Network Marketing

In the 90's the binary compensation plan was released. The premise is that it is only 2 people that anyone person would have. The companies will hype, all you need to do is find 2 and make it sound incredibly easy. Now, when you find a third person or above, you place the person under someone in either leg. This was done to promote helping your people to find others and build your business as you help others build theirs.Let me explain how the compensation works. You have two legs and for simplicity sake, the leg on the right has 1000 points. You are feeling good! Now you look at your left leg and they did 2000 points of volume. Now, anyone would feel that is great, you had 3000 points for the month. But hold on for a second. You are only paid to the point the legs are equal. So you would be paid on the 1000 point leg on the right and you would get 1000 points on the left. But the other 1000 points you worked hard to build is lost. Gone... you don't make a penny on it.Now, sure, this is where your upline will tell you that you need to balance out your legs, and not to worry, you will not always limp. Now, here is where I really get concerned with compensation plans, because if all people are equal and they are all go getters, that is nirvana. But, you will have some work and others expect you to do it for them. Now, when you think you have balanced the legs, your upline is needing to balance his legs. So, this is where you need to be careful because they may be getting you out of balance, and it will continue up the path from you. In this compensation model, you have to balance the the go getters and slackers. When you are sponsoring into network marketing, you never know who will do what. Your success will be based on what the people do in your organization. Now, the fact that most network marketing companies do not teach methods that will get people attracted and making money and not dreaming about the money, really will impact you. You need to have a system of activities that people need to do to be successful.Now, in this compensation model, who do you want to help? You want to help those that are actively working. However, what happens with that? If I do nothing, I know you have to help me. This will be placing people under me to succeed so it balances your legs. So in essence, people are not rewarded on what they are doing, in this, you may be rewarding those who are lazy.I would definitely encourage you to become educated on how to build your business. I would recommend that you want to find customers who love the products, and then you place them on each side of your business. Then you can show them how to get their products for free, by doing the same thing of finding customers. Get with a proven networker out there that is willing to teach you how to build your business.