Something Big that's often Misunderstood...(2)

To conclude our earlier discussion on the various network marketing compensation plans...

So... yes, some of you have guessed it by now, we'll be discussing the Dual-line Payplan.
(Also known as dual-team, 2-team, dual-leg, 2-leg. And, sometimes mistakenly labelled a "binary" for the wrong reasons.)
Read on and perhaps you'll understand the common misunderstandings a little better.

Some facts of Dual-Line compensations:

• Gives a distributor the power to choose to stop at 2 referrals.
  (or as few as they want, as long as it is more than 2. See Point 3 for an elaboration.)
• No monthly / weekly "minimum" group product volume targets.
  (some companies do though.)
• Marginal initial organisational growth.
  (due to minimalist 2 referrals required. But you will see why it does not matter in the long-term as explained below. See Point 4. IN FACT, due to less numbers required, people might act faster in recruiting in some cases.)
• Sometimes paid on qualifying volume "cycles" depending on the growth of the 2 legs.
  (some companies' cycle payouts are fair, some may not be. See below for what "fair cycling / balancing" means. See Point 2.)
• Due to smaller initial numbers of referrals, short-term revenue is slow... but steady.
  And for some, due to "cycling", your first couple cycles may take some time to materialise.
  (if you look at it objectively, if a part-timer was involved in the previous 3 comp plans, they'd not be receiving big upfront revenue anyway... perhaps just marginally more.
  And, if the part-time downlines were not sponsoring many new distributors of their own anyway, there wouldn't be a large organisation even in a unilevel!
  So... let's not sweat the small stuff and look at the long-term residual goal that is truly available in binary plans.)
• Allows an "upline" to place a new "downline" below an existing downline, aka "spillover".
  (provides motivation, shows organisational growth & encourages teamwork.
  Up to half of new downline signups get placed under you, while it is usually much less in matrix plans where 25% or less of new signups gets placed under.
  e.g. in 4-by-something or 5-by-something matrix plans)
• Due to the smaller numbers involved, companies tend to allow unlimited levels of revenue even for the fresh starter.

Common myths of binary or dual-line plans:

1. Volumes get "washed away" / flushed
2. Balancing "problem"
3. "Not really" just 2 referrals, you need more
4. You "won't go far" with just 2
5. The "elephant leg" phenomena
6. Downlines "sit back & wait" for the revenues,
   or, since its 2, you work your butt off to find more to join you
7. Only fits "big-time" networkers who plug in their existing downline

Myths busted!!
Here's why:

1. Most companies with binaries allow unlimited (or literally unlimited) product volume accumulation.
   (some don't though, so do your research well.)
   
   No doubt, it usually accumulates on one leg but as your other leg grows in consumers, would you rather have a situation where you qualify for revenue % or cycles with volume points already banked on the other leg, or start afresh with 0 points?
   Obviously, "something" is better than nothing.
   
   --> Volumes do not get "washed away"!
   
   
2. Some companies require both legs to exactly "balance" or match in volume consumption before releasing a % or "cycle" paycheque.
   e.g. Companies that cycle based on an equal 1:1 or "1/2 - 1/2" balance, are unrealistic as not everybody can refer 2 distributors -- 1 in each leg -- at the same time. Organisation growth is naturally not 1:1.
   
   There are some companies that allow a more "natural" organisation growth & payout to take place.
   e.g. Let's assume a distributor "X" signs up into a system, and in the worst-case receives no upline assistance in growing a downline.
   X then proceeds to spend Time Period 1 promoting the products/co. to 1 new distributor & signs her up in Leg A.
   In Time Period 2, both of them promote to 1 new distributor each, and X places her new distributor in Leg B. Ratio of legs A:B is 2:1.
   In Time Period 3, X chooses to "stop at 2" while the rest continue in referring 2. What results is a leg ratio A:B of 4:2.
   From the above, it is clear that cycles based on a 33%, or 1:2 or "1/3 - 2/3" org expansion is not only fair, but also realistic.
   In fact, in Time Period 4 onwards, the org expansion ranges from 34-38%.
   Therefore, the fairest binary structure remains to be "1/3 - 2/3" (1:2 leg ratio).
   
   Just look for the Right Company.
   
   Of course, the argument that remains then would be that "not every distributor/consumer consumes the same amount of products monthly".
   To which, only a predictable compensation (with actual possible revenue figures) in a "worst-case product-consumption / distributor-recruitment case study" will be able to show that a consumer is actually able to earn -- then that will absolutely illustrate & suppress all debates.
   
   The logic here is: if one can earn in worst-case, what more if product consumption is greater than worst-case!
   
   Ask your current / potential Sponsor to show this to you in his/her comp plan.
   If they can't... Contact Us (or leave a private comment)! =)
   
   Finally, some companies incentivise default overriding commissions (i.e. weak leg % or "cycling") by rewarding distributors through "matching bonuses". Only upon sponsoring a heavy-hitting networker would one derive much revenue to "match". Usually, one would "match" individuals who are most likely just average like yourself, SO "matching bonuses" provide some form of marginal incentive. Evaluate for yourself if it blends into your business building strategies.
   
   --> No problems here with "balancing". Binary plans that pay on a 1/3 - 2/3 leg ratio are more than fair!
   
   
3. "Not really just 2" -- yes and no.
   
   Yes: If your company restricts you to a low capped revenue of e.g. 1k/week <-- Usana Health Sciences. In such a case, it isn't really just 2 referrals you need. One would have to build multiple "inside" legs & open multiple "business centres" in one's own downline. That means 2 additional referrals for each RBC opened! That's tough! You're better off joining a unilevel in this case.
   
   A resounding NO: If your company allows you to achieve your desired income target on as little as 1 distributorship / RBC -- truly 2 referrals.
   e.g. If you like to refer as little as 2 customers, stop & teach your downlines the same thing, and set a target to earn US$12k per week in 1 or 2 years time, then a company like... umm... Enliven allows you the flexibility.
   However, seriously, if you're looking to leverage on the power of just 2 referrals in a US$14k/week company... why "incapacitate" yourself if the sky's the limit?
   Therefore, you should naturally take a serious look at Synergy (20k) or why not bHIP Global (25k!!).
   
   --> Find a company with a high cap with proven infrastructure to ride on -- that truly features a compensation based on 2. Yes, they exist!
   
   
4. e.g. If a distributor hypothetically signs up and in the "worst-case" does not receive "upline" assistance in placing new distributors below him/her (like in Point 2 above)...
   and the distributor spends his first 2 months referring 2 downline distributors into the business (@ a rate of 1 distributor / month) & the situation repeats itself:
   Month 6 --> 20 downline distributors
   Month 12 --> 376
   Month 18 --> 6,764 !
   
   It is not a joke... go do your grade / primary school arithmetics.
   
   MLM skeptics will like to argue that market "saturation" will be reached sooner or later.
   
   Well, we've got news for you: 1) not everyone will be involved in building a network with a company at any one time; 2) products & systems between companies (e.g. The Body Shop at Home vs. Primerica vs. The Pampered Chef) may not be related at all & those savvy in the industry may be able to juggle 2 or more companies; 3) the human population currently stands at 6.6 billion (or 6,600 million) and is growing 6 figures daily.
   
   With a minimalist network of 2, it is real hard to hit the perceived "saturated" situation... & simply makes more sense to work with as compared to a network which requires more & more people (e.g. unilevel plans) before one gets rewarded for the work done marketing products/systems.
   
   --> You will go far with just 2!
   
   
5. The "elephant" leg:
   Usually a result of business building tactics like what some call "streamlining" (a variant of "stacking" in unilevel compensation), which is good for early organisational motivation but results in detrimental network dynamics.
   
   Now, if there exists upline assistance in the contrary from the above [Point 4] "worst case" -- where uplines place new downlines below existing distributors -- naturally one leg will start growing at a greater rate than the other "weak" leg.
   
   Perhaps you'll then need to focus your efforts in developing your downline distributors in your weak leg to speed things up, though you might not "catch up". But... so what?!
   
   --> This is only a natural characteristic that one should feel priviledged if he/she is presented a unique situation like that.
   Otherwise, patience is the key & as shown in Point 4, with the natural consumer network growth you will see the numbers and still benefit from your hard work.
   There is nothing to be discouraged about.
   
   
6. In no other compensation structure will it allow a distributor to earn handsome rewards based on a simple referral of 2 sub-distributors.
   Unilevel & matrix plans can reward on 2 distributor referrals, but will not be able to qualify a member for bonuses & revenue beyond their very restrictive levels of earnings.
   This post will explain why one doesn't "work & work" in a simple system of 2.
   
   --> With only 2 referrals required to optimise a simple dual-line system, there is no reason why distributors should "sit back" and not do the minimalist work required.
   If this is the case in your consumer network or the network you're joining, then it boils down to inadequate leadership, education & motivation.
   Simply find a team with the correct leadership!
   
   
7. --> And, as obvious as it is from the above elaborations, a dual-line compensation plan not only suits a big-time biz builder, but is also perfect for the part-time promoter / distributor / basic consumer who comes in "fresh off the boat"!
   

All in all, a binary compensation plan usually allows a new distributor to capitalise on "automatic" & selfless biz support from all directly related senior partners -- & all the way to the company's #1 distributor!

Similarly, in the near future, when assistance is requested from junior partners, it'd be totally worth a distributor's effort & time in helping out all juniors as one would be rightfully rewarded when the situation bears fruit.

--> These days many marketing groups within traditional payplan companies make it mandatory to enroll their new distributors in similar ways to promote the ever-present teamwork, however still subjecting themselves to their comp plan's restrictions, breakaway characteristics, etc.

(Leaders will also argue that there are "no losses" when distributors fall outside earning levels because infinity bonuses take care of that. The fact of the matter remains, that (1) ONLY leaders will attain the argued infinity bonuses (& only at later business stages); and (2) during the time period where network product volume falls outside of one's earning levels & until the said distributor qualifies for infinity bonuses, commissions are flushed & lost forever.)

In fact, many people building traditional payplan businesses in this fashion do not realise that they are flouting their own distributor contract policies & are liable to be terminated.

Obviously, many people are not terminated because they are earning minimal to nada in their paycheck, & yet are generating product sales volume for the company.
However, it'd be worthwhile to terminate Leaders as it would save Companies 5 to 6 figures in monthly commission payouts in their P&L figures -- and major companies HAVE been known to terminate such individuals from time to time.
Why build business silly like that & jeapordize one's efforts?
Get yourself involved with a company which will reward you to the full extent of your (& your network's) effort 100% of the time!
=)

So... which compensation makes the most sense to appeal to the widest audience of potential independent distributors -- i.e. the part-timers?

Just find the right company, with consumable products, that fulfils all the above generous characteristics!
or... contact us (or leave a private comment). ;)

** [Please refer back to this post for future updates & graphical illustrations.]

---

To end off, here is an excerpt of Jason Wells' comment from another site, on his view of compensation plans. (Jason is a leader from a dual-team payplan company.):

" I have read a lot of posts. Bottom line, if you don't sponsor or move product, you will not make money in any of the plans. That is one thing I agree with.

But when you remove the "smoke and mirrors," every plan has its limitation. I favor the binary, because its limitation is up to me. If I can't find two solid people and train them (even if they are sponsored and trained by someone else), I don't make money.

Other plans often require personal sales volume requirements that create a non-residual income situation.

My 4 top people were sponsored by someone else and I reached down and helped them since I am not paid on levels. I can go as deep as I want until I find my leader.

Other plans kill you on this because of levels and the breakaway will kill you if you are not selling a lot. That is where you hear the stories of the "garage full of products."

If you are heavy hitter and unique in your production, you will (do well) in the break away, however, if you are average like me (<-- edit: & 90% of the network marketing population!) binary... should be your choice. "

---

Do WITHOUT the juice/vitamin/cosmetic/household "stuff".
Find a niche & the market will come to you!

请联络... 听听华语讲解


>> Click Here Now <<

& Be First!