Since the mid 1990s, binary network marketing has become a popular multi-level business created to give participants an equal chance of financial success. Like other multi-level or network marketers sell a product or a service, but also recruit individuals to join as distributors under their team. Compensation depends on the type of plan as well as how the person markets the products and brings in recruits. Marketers are paid for the sales they make as well as the sales made by their distributors. The binary pay plan is one of many payments plans in the industry. Distributors entering binary network marketing companies have the potential to gain high earnings, but only by putting in some effort. As with any multi-level marketing business, prospects also need to be aware of how each company works.
Binary payment plans are popular because of their simplicity. Building on the number two, binary network marketing distributors begin by introducing the product or service to two individuals, who will each then introduce it to two more. Those four will introduce it to two each, making eight and so on. Theoretically, this process could continue until infinity, but in reality, most companies will cap how much each business center draws in, so the company's profits will remain intact. But this plan will not be successful without some work. As new recruits are brought on board, marketers place them in one of two business centers, benefiting the market and other recruits he has previously made. Payment is made according to the strength of the weakest center. The key is to balance both branches as much as possible. Binary network marketing plans are built on a team mentality. Distributors benefit from the work of everyone else on the team. At any time, a team member can help another by recruiting an individual to work under a weaker center. Within a few months or years, teams may exceed thousands of members. Money can be earned almost instantly, compared to other compensation plans that may take up to six months before marketers receive returns. In the Old Testament, the Israelites united to complete an impossible task that couldn't have been done unless they worked together. "So built we the wall; and all the wall was joined together unto the half thereof: for the people had a mind to work." (Nehemiah 4:6)
The team approach with binary network marketing is very attractive for individuals beginning in the multi-level marketing business, part-time and full-time, as well as for those who are veterans in the industry. Companies usually provide a lot of support for distributors not just at the beginning, but on an ongoing basis as well. Resources range from sales letters, websites, DVDs and CDs to free magazines, testimonials and other promotional materials. Many will also offer bonuses and other incentives to increase sales and recruits. This gives every member and equal opportunity to earn profit. Not every marketer will takes advantage of the help, but it is available. On average, industry payouts range between 38-42%. Companies who offer higher payouts tend to lower the quality of their products to compensate. Much higher percentages will eat into the company's profits and sink the business within a few years. Companies paying less than the average keep more profits for top level executives. Another attractive quality of binary network marketing is that sales over minimum requirements can be stored and carried over into future pay cycles, unlike other uni-level plans where the sales volume is reset at the end of each pay period, forcing the marketer to start each month from scratch.
Whenever people consider multi-level marketing programs, one concern is whether or not the program and compensation structure is legal. State and federal regulations have scrutinized multi-level businesses, but not according to their payment plans. All plans, including binary network marketing, have been evaluated. Illegal pyramid schemes sell products that have no significant value beyond qualifying for the payment plan. Many companies require large up front purchases of products that only new recruits would buy. Legal marketing companies only pay commissions on retail products that people would buy based on their actual value not just to get paid. When infringements are found, regulators will limit or cease operations while the company makes the changes it needs to become legit. Only then, can they resume business. The system can be a great opportunity to make money, but unfortunately, many companies abuse the system and leave distributors with products that have little or no value and bad reputations.
Regardless of legal problems with some companies, multi-level marketing is considered a safe, legal business. With over 30 years of history, binary network marketing companies have had no legal indictments regarding their payment methods. Before choosing a company, always consider the products or services, the business model, and the company's track record. Make sure the product had value and is marketable. If people don't want to purchase it, the program is not worth the effort. Find a program with little or no start up costs. Avoid those with high fees or expensive product purchases. Don't be lured into get quick rich schemes. Every successful multi-level business requires work. Some programs include consumable products or services that are renewable. These recurring purchases provide residual income, not just one-time sales, that earn money with minimal effort. These programs are a great way to earn extra income and build retirement funds that will last long into the future.
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