NOT TRUE – Binary Pairing Will Give You Residual Income
Again, this is not true that… “Binary Pairing Will Give You Residual Income“. Please don’t believe on this – EVER! If your upline or the company itself is saying that you will have FINANCIAL FREEDOM because of their BINARY SYSTEM – that is BULL@#$@#$. Sorry for my french.
Imagine yourself, you do your recruitment and sponsorship throughout your lifetime. And your downline would do the same too. Just to prove to everybody that this way you can have your financial freedom. That’s a bull!
Looking at the image on the right. It says that you just have 1,024 people on your left and 1,024 people on your right – and multiply your point value (PV).
Take note – pairing will come only once.
Reality is – YES, binary pairing is giving you INCOME but TEMPORARY. No doubt about it. How much you want to have is also directly proportional to the effort you put to build your group.
So, What is a binary plan in the first place?
A binary plan is a compensation plan used by MLM companies to which it allows the distributors to have only two direct business group. Your business group or team in the left and in the right. Either this group is created by you. Thru your sponsorship and they are your first-level distributors. Or “spillover” from your sponsors or whosoever at the top.
It also allows you to earn thru pairing – binary pairing. In which; in every person you put in your left (your group in the left) is paired on your right (your group in the right) – you will earn. An amount has been identified to each pair you’ve made.
The more pairs you’ve got – the better. Take note, pairing is only once.
Why Binary Plan works?
There are 3 common reasons why binary plans works to both distributors and company;
- Spillover – it is a concept to which if you exceed your sponsorship to 2 people, you can put them below to either of the group you created (left or right).
- Easier to understand – take note your business is just your left group/team or right group/team. This allows the distributors to duplicate easily. One of their sales technique – just get 2 and have this in your left and right.
- Easy to grow – it attracts the concept of “get-rich-quick”.
There are 2 things that works in this concept; it is greed or service to humanity. This compensation plan offers potential quick way to make money. While providing a “service” that allows recruits to earn from the same method. Looking at it, it is understandable that more and more companies use this compensation plan one way or the other.
Limitations of Binary Plan
A number of limitations has been identified in this kind of compensation plan.
- Distributors must “balance” the sales from their two business groups. First, these are people on your left and on your right. Some of them likes MLM and others are not. Second, some of them joined because of discounts.
- Companies that are relying only in the binary system will fold or close shops. Overcompensation is the direction of this kind of plan. And once the company over compensated its distributors – they close shops.
- Flush-out or daily limits is implemented to prevent overcompensation. Still this will not work in the long run.
- MLM companies that use binary system in their compensation plan in the US (United States) have been chased by the government. A company that apply binary system in their compensation plans is banned and face litigation.
- No people signing up on your left and on your right – no income. Simple as that.
Binary compensation plan is only temporary
Please remember, each people on your left group and on your right group only pair once. It means, when it pair – you earn. So if no people comes on your left group and on your right group – NO INCOME.
So the RESIDUAL INCOME that they promise using the binary system in their compensation plan is a LIE!