You have done your due diligence and are almost ready to take the plunge and start your own network marketing business. Then he heard the words “MLM binary” and, while nodding his head as if he understood exactly what his potential sponsor was saying, he actually heard that it was “is for the best” and “can make a ton of money”, and the rest. The conversation was so confused it could have been in Chinese.

You are not alone. MLM compensation plans are some of the hardest things to understand on the planet, unless you have a degree in math. But it’s not like that, you just want to get into the ground floor of a successful MLM company.

MLM binary compensation plan explained

The word binary means two. So think in terms of two. When you sign up and start building your new business, your first goal will be to go out and find two people who also want to work to secure your time and financial freedom.

He inscribes them and places them on what is called his first line. Your personal line of sponsorship and, because we are working a MLM Binary program, you and everyone else in the business can only have a maximum of two people on your front line. Two. Only two.

So now your business consists of you and two. Fred and Sally. And in an ideal world, both Fred and Sally would now sponsor two who sponsor two who sponsor two, etc., and they all get rich beyond their wildest dreams. But unfortunately, we live in the real world and Fred and Sally are likely to do nothing at all. So you have to look for a few more people and since you can only have a total of two people in your front link, you will have to place these new recruits BELOW Fred or Sally.

MLM Binary Spill

When he placed his new recruits on Fred and Mary’s downlines, they received an upline overflow. In other words, you have helped them build a side of their business based on their efforts. And this is one of the huge benefits of the MLM binary compensation plan – the idea that if you have an active upline, they could actually help you build half your business.

The challenge is that you will still need to sponsor and recruit a good number of people and place them on the other side of your business to “balance” the two legs because most plans only pay a commission when product volumes balance. So while you may enjoy a massive spill, you’ll only get paid when you add new people to your business as well.