Review of a regular binary compensation plan and my thoughts about it - why not

I recommend you to read it up to the end, I promise you’ll earn a lot. 

I won’t tell you which one because I don’t want to get a law suit.

Just want you to pay attention to what “leaders” really tells you.

Because of that, I changed the bonuses names and numbers of compensation, volume etc'.

So if it fits your business, it's isn't yours. :)

Let's start

First compensation - sponsoring bonus

Anyone you’ll sponsor. 

Meaning you’ll bring to the company, you will get 10% from all of volume

buoght for the first 90 days up to 400$

What am I thinking about it?

I think that sponsor will want the new recruiter will spend 4000$ every month within the first 90 days.

How much pressure on a newbie.

Is this the kind of sponsoring you looking for?

Someone who will put pressure on you to spend 12K within your first 3 month?

I don’t think so

Second compensation – Team built bonus 

So I must go ahead and say it’s a binary compensation plan and for my opinion they are bad for the industry.

Why?

Because in binary network marketing you get paid for the smallest organization.

In the best scenario you get paid down to the smallest organization and they are saying to you, you will get paid for infinity…

By the way, later on the presenter says that your income on the binary tree is limited to 12,500$ per weak.

Don’t get me wrong. It’s a great income but, again it’s not to infinity as described.

Let me demonstrate

In this case you have two person on the right and 7 on the left.
You'll get compensate only on the two people on your right leg. 

Best scenario, you'll get compensate on 5 people. 2 from the right leg and 3 from the left leg.

The 5 people more that on your left leg, you won't get compensate.

Is this fair?

You built a big organization.

Why won’t you get paid for all?

Why on the smallest?

Because they want to pay you less!!!

In the presentation I’m watching, the presenter says:

We pay 10% on the smaller volume.

It’s like 5% of each side and it’s a LIE!

How come?

Let’s say that on the left leg you have 100 points of volume and on the right leg you have 60 points of volume.

10% out of 100 equal 10

5% out of 100 equal 5

5% out of 60 equal 3

and together 5+3=8

It’s 20% less than 10

But you will get only 10% out of 60.

Meaning 6, not 8 and obviously not 10

And that’s a  

LIE!!!

And here is another lie.

You get paid on the lowest volume.

And in the presentation the presenter says 1000 points on the left and 800 on the right.

You will get paid on the 800 points

And now, in order to make you feel good he says and the 200 left on the right, you don’t lose them, they'll roll over to next week.

What????

200?

Didn’t you had there 1000?

Where did 800 points of volume, created by a group you built vanished????

To make you feel even better the presenter says:

Our company is the only company in the world that have unlimited carryover in unlimited time frame.

What??

That means the bigger volume group volume will only get bigger and bigger and we already know that they are paying on the smallest volume.

Is it good for you?

off course not.

There is one more term for this volume carryover.

You'll keep up the auto ship.

When will the aggregating stopped?

It will stop aggregating when you’ll stop paying the auto ship.

It means, you will build a big group.

You will never get compensate on this group volume.

You will pay auto ship because you want to get paid on the aggregating volume.

But when you’ll realize it will never happen, you'll stop the auto ship.

When that will happen, the company will sigh and grab all the so called “your volume” into its pockets.

I love Binary compensation plans…

Don’t you?

NO!!!

Don’t go yet, I didn’t finish there still 5 bonuses I didn’t talk about.

Let’s continue

Third compensation –Going deep bonus 

Anyone you sponsored directly, meaning you brought this person to the company will be in your first level parallel tree and you’ll get 7% on this person weakly check.

Since he’s check will be small, because he’s check is from the binary tree which pay everyone less, so is your bonus will be small.

But, this is the part I actually like in this business plan, this is the part that will cause your up-line to help you because they want you to recruit more people.
If you won’t do that their income is limited to the smaller organization.

Forth compensation - Leaders bonus 

Here the company takes 3% (common number) out of its weekly income and gives it to the leaders.

It can grow up to 10,000$ +- and it’s ok.

The problem with all of these dazzling amounts of money that you are so dazzled that you don’t think how much you have to invest and do in order to get it.

I didn’t understand it completely because in one sentence the presenter says weekly volume after few more sentences the presenter says that the amount of money depend on how much volume came in, within the last year.

Sorry, but I can’t explain that.

Fifth compensation – Living good bonus 

Before I’ll dive into the living good bonus I want to tell you that the presenter said now that they want you to hit your rank at least twice a month so you’ll be able to get the living good bonus.

It means that if you didn’t hit your rank you won’t get paid!!!

And that’s my friends the main reason behind ranks.

The other reason is to make you fill good on achieving something.

That's why the rank names are silver, gold, platinum, diamond etc.
And that’s goes to almost every MLM company there is

So, living good bonus

If you hit your rank, twice a month, you’ll get extra 300 to 1100 $ per month.

 Sounds good?

It's good, if you hit the rank twice a month.

It's good if you don’t count on it like suggested by the presenter to pay your mortgage or buy a car or any other commitment you maid to pay with, because if you didn’t hit your rank twice a month.

You won’t get it.

Sixth compensation - Didn’t get it bonus 

Sorry, But I didn’t get it.

I have 20+ years of experience, I was member at 3 MLM companies, still in one.

Heard dozens of compensation plans, some was really hard to understand but I made it.

This one I didn’t.

I did understand that 1 person, who is qualified will get this bonus once in a while.

Can’t give you more than that.

I can tell you I don’t like qualifies process.

Why?

Because the work has been done, why can’t I get compensate on the work I done and have some rest?

If you always have to hit your rank it will never be passive.

I want to retire someday, don’t you?

Seventh compensation - Once in a life time

This bonus includes huge numbers.

But it’s once in a life time and after you did a lot of work.

So it’s important but only if you joined.

I don’t know how about you but I’m exhausted

My advice to you is not to join MLM companies that is hard to understand their compensation plan (Remember you’ll have to explain it for new recruiters you’ll bring) or you have to hit the rank to get compensate.

Off course I'll recommend you to stay away from binary network marketing companies

The next few lines the last lines.

The compensation plan of my company is like this:

You have someone or group of people below you, you get compensate every month, the same percentage.

It doesn’t matter who recruited them, or when they joined.

That’s it. Can’t be simpler than that.

Join us now, get compensate on everyone below you and retire wealthy.

Guy Harduf – network marketing expert