In a Binary Comp Plan? This Is A Must Read!
Having been in a binary and always feeling like something was just plain wrong, I was grateful that Jeff Olson, icon in the relationship marketing industry and best selling author of The Slight Edge finally put in words what I had been thinking.
Jeff has been in the industry for years and built several billion dollar companies and has been the KEYNOTE speaker at the Direct Selling Association’s annual symposium for 16 years straight. He knows all of the CEO’s and top people in the industry.
And this year I heard him blast binary comp plans. “They should be illegal.” he said. And when he explained it, it finally made sense to me why I was always uncomfortable during my 3-year stint with one.
First, he says the people in the” know”, the big networkers ALWAYS get a deal. They know enough to get in someone’s “Power leg”. That means that one of their two legs is already built for them. They just have to slot a bunch of people in the other leg.
If you have ever been in a binary you know that you are only paid on your lesser leg. That means that at the end of the month all the volume in each leg is added up and you are paid on the smaller leg and that same amount of volume is subtracted from the larger leg for the next month.
In effect you are only getting paid on half your volume. If you are in someone’s power leg and did not have to build that leg it isn’t all that bad for YOU. But as you bring on unsuspecting newbies and slot them in, they have to build BOTH of their legs. And at the end of the month half of their volume disappears too.
That may not be too bad if you happen to be in the big networkers power leg, but many, many, people end up in an inside of an inside leg. And NO ONE is helping them. If they end up in the inside leg of someone who quits or doesn’t do much they are on their own. They have to literally do more than twice the work and they do not have all of the connections and know-how. There is almost no way they can be successful.
And to make matters worse, your sponsor and anyone above you is paid on ALL of YOUR volume while you are only paid on half of your own volume! Completely unfair and as Jeff says, “disgusting!”
Most eventually quit after spending valuable time and money trying to make it work. Trying to achieve their big dreams that they had when they started and end up feeling as though they are losers. Others can make it happen and yet they couldn’t.
As Jeff Olson said at our last conference for Nerium International, that is a crime for many reasons. First, so many unsuspecting people are duped. But the worst part is that those people come into the industry with all of their hopes and dreams and when they fail, which they almost always do if they are in a bad spot in a binary they end up not where they were when they came in…but worse. They have lost their dreams and feel it is their fault! And it is not. It is the fault of the BINARY COMPENSATION plan.
I am so grateful that Jeff Olson and the team at Nerium crafted a comp plan that is fair to all. And during my just over a year there they have improved the comp plan several times. Most recently adding a coded bonus of $250 that goes down to infinity. Some companies ONLY have that as their plan. They made the payout not just 10 levels but changed it to 10 GENERATIONS. That means that in effect we are paid on way more than 10 levels. I know in some cases I am paid on 20 or more levels.
There are more changes and additions in the works. We are still a ground floor opportunity, not quite 2 years old and yet we have done more than $300 million in sales! We have given back over $30 million in FREE product to Brand Partners. And there is more.
Want to learn more about Nerium and the very aggressive compensation and opportunity? Give me a call! Our team is looking for quality people who are teachable and willing to do some small and easy to do things every day to build a huge business for their future!