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Gene Hughes (MD)
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Gene Hughes (MD)   My Press Releases

Struggles With Binary Comp Plans

Published on 1/25/2019
For additional information  Click Here



 Why Most People Struggle in Binary Compensation Plans

To answer that concern, what ever compensation plan your in, it is and will always start with you...

There is a certain appeal to the binary compensation plans for newcomers of network marketing. Binaries are quite easy to understand. The amount of money paid out to distributors is often a flat rate based on volume of product sold.

Newbies are sold on the idea that their upline can only place people in one of two places and thus a new person's business will be "fed" from above.

If you are one of the lucky people to be placed on a very succesful upline's "power leg", then in reality you only have to only work one leg. But...

Unfortunately, many people do not end up in this situation and that is where their trouble begins.

Binary MLM compensation plans pay out a percentage based on the total volume on the lessor (least profitable) leg. You do not get paid on your greater leg.

The company keeps all that money. So let us say that you end up on someone's inside leg. What that means is that no one from above you will place anyone on that leg, but the person who enrolled you.

If your enroller is not actively and successfully growing his or her business, you will receive no people placed below you from anyone but yourself.

All those in network marketing know that successful businesses are built by building a good, strong downline and not relying on an upline.

But here is the problem with a binary. If you have to build both your legs on your own, you head out and start the recruitng process. You alternate where you place your recruits, in order to keep your two legs balanced.

In binary plans, balance is very crucial. After a few month you've placed ten people on your right leg and 14 on your left leg.

Of these, seven on the right and nine on the left are starting to build their businesses. Your network is finally growing. Things are relatively balanced so you are starting to receive a small residual income.

Then you get lucky and enroll Big Sam on your right leg. Sam has been in the network marketing industry for 25 years! You are extremely excited, because Sam's business takes off like a dry grass fire in high winds!!

In a few short months you have now over $100,000 worth of volume on your right leg. Your left leg is still doing OK, but you only have $12,000 worth of volume there.

If your company pays out 8% of your lessor leg, then you will receive 8% of $12,000 which is $960. Since your company does not have to pay you anything on your right leg, they keep all of that money.

You have done a spectacular job enrolling Sam on your team, but You are not getting paid on ANYTHING that Sam does! Your company is making a lot of money from your hard work, and you are not benefiting from it.

And it gets worse...

Big Sam is really great at this business and eventually your right leg has a million dollars worth of volume in it! Even if you've developed your left leg and are up to $100,000 in volume, guess what? You still will not receive one dime of the money that Sam is generating.

You only get paid on the left leg, the shorter leg...

In my humble opinion, binary plans certainly sound great, and they are easy to understand. They make people feel like they are actually working as part of the team.

It's all good until your hard work ends up benefitting the company instead of benefitting you!

Hold on...don't fret! There is a better way to go. Compensation plans have developed a great deal since the beginning of network marketing, approximately 70 years ago. The latest type of compensation plan is called a Hybrid Unilevel Plan.

This type of dynamically compressed unilevel plan is the cutting edge of network marketing compensation plans. Add to it other bonuses for beginners, plus matching bonuses and rank bonuses and the sky is the limit. This type of plan is inherently more fair to its distributors that any other plan in the industry today, particularly in comparison to binaries.

In fact CTFO's compenstion plan is so advanced and incredible that it is copyrighted!

 Who else Dislikes Binaries??

 (I have been a part of several binaries over the years)
The TRUTH is, companies that have Binaries do so because it does two things...
1. Creates MASSIVE Breakage to the COMPANY.
2. Makes it so only a select few make all the money.
I look at other companies, and see owners making a ton of money OFF of people, not "with" people...this is so unfair!
  • CTFO pays out 100% of the CV (commission value)
  • No Gimmicks or Gotchas - No Fine Print
  • Fairest & Most Lucrative Pay Plan in the Industry (Copyrighted)
  • CTFO Auto-ship has HUGE incentive of 5% on ALL ORDERS, but it is NOT required.
Catch a short webinar now, click below!
These statements have not been evaluated by the Food and Drug Administration. These products are not intended to diagnose, treat, cure or prevent any disease. CTFO assumes no responsibility for the improper use of and self-diagnosis and/or treatment using these products. Our products should not be confused with prescription medicine and they should not be used as a substitute for medically supervised therapy. If you suspect you suffer from clinical deficiencies, consult a licensed, qualified medical doctor. You must be at least 18 years old to visit our website and make product purchases. We do not make any health claims about our products at CTFO. Before taking our products, it’s wise to check with your physician or medical doctor. It is especially important for people who are: pregnant, chronically ill, elderly, under 18, taking prescription or over the counter medicines. None of the information on our website is intended to be an enticement to purchase and may not be construed as medical advice or instruction. The use of any of our products for any reason, other than to increase general health and wellness, is neither, implied nor advocated by CTFO.
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