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Binary Network Marketing Pay Plan Explained

There is so little information floating around on the internet these days on the comparison of network marketing pay plans. Companies and distributors always play the high points of their plans against the competition without helping the prospect (potential new recruit) really understand what are the benefits of each plan.

Our focus here is to highlight one such plan which may help you in your research for the best network marketing plan in the direct selling industry. Please do not think you must stop reading now if you do not like a binary plan. The next few paragraphs are important to anyone in the industry.

A network marketer's success depends on two important factors. One if how much you get compensated by the plan you are in. The second is how much you can take advantage of the plan and make the most money from it. By this we mean that with proper structure in your business you can build a very strong organisation which in turn will compensate you handsomely.

Every network marketer wants to earn the most income for his or her efforts. Be cautious about plans that pay too little as there are ones out there that pay more. With that said I would like to point out that plans that pay more than the industry average must be looked at closely as they may go out of business soon with over paying. Remember that the company has to make a decent profit to stay viable. Companies can only pay a certain amount out to their distributors. If they choose to pay more then this amount will come out from the profits of the company and or the quality of the raw ingredients of the product being sold. A poor quality product will not stay on the market for too long.

There are a number of different pay plans that are present in the direct sales industry. In the last 60 odd years we have seen compensation plans come and go and a few have been very successful. Some of these plans may seem on the surface to be the same yet they all differ as you dig deeper into the plan structure. Companies such as Amway and Herbalife have been around for years and their plans have withstood the test of time. More recent companies such as Usana Health Sciences use a more modern day approach to the direct selling industry and have been making a lot of head way towards being recognised as a leader in the direct selling arena.

One such plan is the binary plan now being used a lot in the last 16 years in the industry.
Binary means two and so all you need to do is to introduce the products to two people and you are in business. It is very much like a human cell dividing into 2 and then 4 and then 8 and so on. In matter of months or a few years the organisation of distributors and customers can far exceed many thousands.

Most binary plans have their volumes capped at a certain figure so that the compensation does not eat into the company profits. This allows the company to distribute commission more evenly down the ranks and more to share for the lower levels. Look for a binary plan that offers their distributor at least 38 to 42% payouts as this is the industry average that most sales companies use to pay their distributors in other conventional fields.

Please don't fall for the old saying that "my plan pays the highest" as this will normally come at a price.

Article Source: http://www.dummiesguideto.com

Claude Fullinfaw would like to share with you his personal experiences in finding a good home based network marketing company in Malaysia .

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