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The Binary Good or Bad?
Link: http://www.internetnextstep.com
Probably the most controversial compensatin plan is the Binary. The truth of the binary is it can be the fastest growning comp plan out there as long as it is a cycling type. Throwing in Matching bonuses can make it go even quicker.
The biggest complaint of the people who don't understand the binary is that you get a big strong leg and never make any money as you never get the weak leg running.
My personal experience is this is hogwash. Most who end up with a runaway leg and never make money, never built the runaway leg in the first place, it was a gift from the gods above.
Having a crazy leg built for you is a fantastic advantage. If you get to work, you can capitalize on a run away leg. If you do nothing, you will not and should not make any money.
The matching bonus idea can help take the sting out of the very very rare case where you do build yourself a run away leg, and have a hard time getting a second leg to keep up to it. The matching bonuses on your personal sponsored can make you a ton of money regardless of a second leg taking off. This is one of the fundamental ways of taking the last major objection to the binary away.
The most interesting thing about the binary is so many peple pretend to hate it, but truth is if you look at any of the very fast growing companies lately, I mean in the past 3 years, they have all been cycling binaries. The facts speak for themselves, yet this compensation plan still has so many detractors.
I am personally a fan of the binary if you want to grow a company fast and attract some of the power networkers.
The negative is, some of these type of networkers breeze in and breeze back out with their teams. If you have a solid product and comp plan, you should be able to keep enough shrapnel behind to have a nice solid sales base to grow wave two in!
More later, gonna take a break now!