Specific Binary Compensation Strategy
The content below can be translated into any language using the Google Translate button directly above the video on this page.How to build a binary considering a specific company compensation plan.
I am not here to go into great detail about binary compensation plans. You can find hundreds of videos on binary compensation. I am not going to go into the details about the compensation of the “subject company” hereby called the Company pertaining to this video. This video will provide some binary basics and show how you should build with the Company plan.
The basics you need to know about binary plans is that you have two teams. One team is usually named the Right Leg and the other team the Left Leg. As far at binary pay, you do not care specifically where the sales are made in an organization other than volume is either under the Right Leg or the Left Leg.
The Company has a specific kind of binary known as a One Third Two Third binary. What is important to know is that binary commissions are based on the lowest Team sales. It does not matter if the volume is under the Right Leg or the Left Leg and the lowest team can constantly change.
The key numbers to consider in the Company are 330 volume lowest Team and at least twice that for the largest team. This means for every 330 in volume in the lowest team you need AT LEAST twice that volume or 660 in the larger team. Using the Company numbers you will receive $50 in commissions for 990 volume provided you exactly split your sales one third on one team and two thirds on another team. With the absolute BEST distribution and highest volume per sale you will need six sales on the small team and twelve sales on the larger team. The best rate is a distributor / preferred customer with 55 volume for a $70 sale plus $8 shipping or $78 per sale. This means $78 times 18 sales = $1404. Your commission is $50 / $1404 = 3.56% MAXIMUM on perfect sales distribution. Generally in a binary one team has 80% of the volume meaning you are paid on 20% instead of 33% so your commissions drop to about 2% or MUCH LESS of sales volume over time.
Compare the binary percentages to the retail percentages of selling distributors packages which start at 15% then 18%, 20%, 30% and 33%. If you consider specials where the price is discounted or extra product is provided, the percentages can be MUCH higher. As example in a recent sale the price was reduced by $100 for the purchaser and the commission stayed the same for the selling distributor increasing the effective commission.
The point is you make five to ten times more commission for personal sales volume than you do from binary volume. In fact MOST distributors in a binary NEVER earn a binary check.
This leads to the point of this video. What is the best use of your time and money to maximize the 2% to 3.5% binary money?
As a side note, most BIG earners often do not understand the math. They have a large database of distributors, usually think everyone can sponsor 100 people or you are lazy, they get in early with a company and or manipulate and take over an old position. Typically their average personal team distributors earn less than $10 a week leaving a match average of $2 per person on the team.
Some big earners have good intentions by placing distributors equally under everyone in their organization trying to get them to earn some binary money. This takes a LOT of personal placement and you only help a few people at a time with each new sale. Since very few people sponsor more than three distributors, the average person has none of these advantages. Also individuals getting a free ride seldom produce so the leader needs to give away MORE people to the person they gave away. Because they give away many members their team match is radically reduced.
Finally, because it is difficult for everyone to be a big builder, matching pay becomes important for long term success of the average distributor. You can make 0.4% to 0.7% of the volume of three generations of distributors. Since matching pay is based on binary income you need to increase the odds that your personal distributors for three generations are successful. You do this by sharing the majority of the volume with your team. Your match could now be as high as $5000 per personal team member.
If you study the Company compensation plan it becomes obvious very fast that there is a structure you need to build for maximum rank and pay.
The structure is simple. Forget all the details on the compensation. Here is the structure you need to obtain and teach:
The leader needs to be a Gold or above.
You need ONE Gold Left and ONE Gold Right always active at 110PV monthly
You need TWO Silver Left and TWO Silver Right active at 55PV monthly
Teach everyone to be a Leader.
The first level is Manager which is easily met by the above process. Next you need one manager on each side to reach Director which once again is the same process as above. Once you are a Director you need TWO directors ANYPLACE in YOUR personal organization. All later rank advancement is based on three generations of personal sponsorship volume.
We know that not everyone is a leader but there is a way to improve your chance to make maximum pay. You can probably guess ahead of time I am not going to tell you to initially focus on the binary income. The process is to get you to focus on making three or more leaders with three leaders who each have three leaders as soon as possible all sharing the most volume. This would be a minimum of 39 leaders on which you could potentially earn matching pay. You may need to find ten or more distributors before you get three leaders.
For example purposes, suppose you sponsor all 39 positions. On the bottom of the Right position suppose you end up with a BIG dollar volume.
The first example shows the “good heart” or typical build trying to get everyone to earn in the binary as the primary goal. This depends on just about EVERYONE placing people or one person with a lot of contacts. Notice the BIG dollar volume is only under four to five people. The other 35 have NO real volume.
Another example of a PERFECT build with everyone placing one left and two right to keep the perfect ratio will lead to 14 positions having the BIG dollar volume and the other 25 with nothing.
The final and best initial structure places everyone on the Right Leg and all 39 have the BIG dollar volume. This is called a Power Leg. (The power leg is the leg you are on under your sponsor. If you are on the Left Leg of your sponsor you would be building under the Left Leg.)
Now you and others start to build your Left Leg for binary pay and you have the greatest chance of maximum volume, good matching pay, and two or more personal directors. Remember, in the long term we are after a few team members creating $5000 a week matching pay, not the majority making us $2 a week.
There are a few other points for a good binary build. First you should take control of the first position on your left and right. By control I mean a family member, friend or business partner that you can count on purchasing the minimum volume monthly to keep you qualified and potentially be able to transfer the position to a big builder in the future.
You want to get your first three generations of leaders as soon as possible. Every day you wait will move them further down the chain by others joining from upline and the less likely they will have the big volume in their downline.
You should keep putting new distributors in your Power Leg until you KNOW that line will continue on by itself indefinitely or you positively have your three Leaders. Remember three leaders get three leaders who also get three leaders. Three leaders in the power leg are needed to get top pay.
In the beginning if you need extra product for personal or family use or you need samples, place orders to keep you and your left and right qualified, upgrade packages until you are Gold, and until your two personal left and right are Gold. Once you and one left and right are Gold purchasing the minimum you need, you can place another family or other account on the opposite side from the Power Leg until they are Gold and meeting the monthly minimum. This will make you a Manager. You can do this one more time if you need more product for samples or personal family use. This will guarantee you have three positions necessary to keep you always qualified as a leader. Take advantage of company specials to rank up your personal teams used for product usage and samples.
When you have three family members/customers in your Pay Leg (opposite the Power Leg) and you still have not built your Power Leg to the required at least three Leaders, you can now go to your family member on the Pay Leg and help them get two Silver positions on each leg making them a Manager. If you are still building the Power Leg to get your three leaders you can build other Pay Leg positions with two Silver Left and Right. Please note, while building your family members on the pay leg, keep the placement side for them to your Pay Leg side which is their power leg. This way if any Preferred Customers become distributors they will be in the Power Leg for that position.
By now you should have a run away Power Leg not needing you to place anyone in the Power Leg. As your personal teams in your Power Leg build their Pay Leg, you are free to place all new distributors under your Pay Leg which will become the new Power Leg for them eventually. Note – If you wait to place in your Power Leg, all that BIG volume and people will be above your distributors and you will need to waste volume on the bottom trying to qualify them.
Because the Power Leg is a runaway, all your leaders are now building only their pay leg. You are now earning matching pay on virtually all of their effort.
Once you reach $5000 a week of personal binary pay, you can now go back to the first family position you placed on your Pay Leg and start building their business creating income for both of you. Make sure their Power Leg has run away volume before placing on their opposite Pay Leg. Use the same procedure you did for you above as you build their matching team before going for binary income.
Remember, your Power and Pay Leg can change over time based on the success of distributors above and below you. Monitor your legs and once you have a clear power leg, build on the other side.
Do not make it hard or complicated. Just teach the leadership method. You become Gold, you get one gold left and right, and two silver left and right. Teach everyone to do the same.
You know which way your upline team builds by checking out the volume they place below you. The best approach is to be a leader and build it yourself now that you know how to do it.
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