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How To Design Binary Compensation Plans

The binary compensation plan is popular because it does what no other compensation plan type can do, and that is, it pays the upline on an unlimited number of levels of downline volume. In this video, I discuss the considerations in designing a binary compensation. For decades the mainstay of the direct selling channel was the generation breakaway compensation plan with stair-step compensation, but that plan is fading away like the horse and buggy did after automobiles were invented. Today, new direct selling companies have unilevel, unigen, and binary hybrid compensation plans. In this video, I’ll share with you the good and the bad about the binary plan. “To binary or not to binary?”, that is the question. So, let’s answer it! A binary compensation plan is structurally similar to a two-wide matrix. However, the compensation method for a binary plan is totally different. Unlike other compensation plans that pay bonuses using percentages of a single commission period’s sales volumes, binary compensation plans pay threshold bonuses based on the accumulation of unpaid volumes on the “left” and “right” sides of a representative’s two-leg organization. For more videos about multilevel compensation plans, visit our website at https://www.sylvina.com. Also, subscribe to our YouTube channel at https://bit.ly/2JQIf1w Do you have questions about direct selling or compensation plans? Contact Sylvina Consulting for answers. Sylvina Consulting: www.sylvina.com Sylvina Consulting: 503.244.8787 Direct Selling Edge: www.dsedge.com --- Are you building a party plan or network marketing company, or seriously thinking about it? Your greatest challenge is that you don’t know what you don’t know. We can help you with that. Sylvina Consulting offers an insightful 250-page “how-to” book for new and young MLM and party plan companies, Start Here: The Guide to Building and Growing Your Direct Selling Company. It's available in both English and Spanish. Order online: https://www.sylvina.com/blog/index.ph... --- Sign up for our newsletter for free tips and articles: https://www.sylvina.com/blog/index.ph... --- Read our past and present newsletter articles: https://www.sylvina.com/blog/index.ph... --- Visit our huge library of articles: https://www.sylvina.com/blog/index.ph... --- About Sylvina Consulting Sylvina Consulting is a privately held firm with offices in Portland, Oregon, USA, that provides an extensive set of direct selling consulting services to network marketing, MLM, and party plan direct selling companies. We have advised and strengthened many startup businesses, young companies, new direct selling divisions of established companies, and large multinational corporations. Our largest clients have included Avon Colombia, Conklin Company, Creative Memories, FreeLife, Genesis Pure, Mannatech, Natural Health Trends Corporation, Nature’s Sunshine Products, Optionelle, Pure Romance, Qnet, Younique, and Two Sisters Gourmet. Our full understanding of direct sales terminology, operations, and business practices and a network of industry resources developed over many years each adds great value to a business relationship. In addition to our work with direct selling firms in the United States, Sylvina Consulting has clients in Australia, Belgium, Canada, Colombia, Denmark, Finland, India, Israel, Mexico, Norway, Russia, Singapore, South Africa, Sweden, UAE, and the United Kingdom.