Many highbred compensation plans today have elements of Binary plans in them. The highlight of the Binary plan is the depth of the pay structure. The lowlight is the percentage of pay-out for the volume created.
A program that is somewhat similar in concept to the Australian Plan is the Binary Plan. Again, they are not easy to understand or in my opinion work efficiently. Binary plans started several years ago (late 80s) with land and other types of contract sales, mostly in gold or silver coins. The plan provides lots of roll over (in this case, people reenter the program usually directly under themselves or their first level). Quite recently there have been some variations again. The type explained was the first wave of binary and where there have been additional or changes I've tried to explain.
Everyone starts as a Business Center (called by other names as well). Each Business Center has two legs (also called Business Centers.) You can be (buy) up to seven Centers but understand that each Center must have two legs so you have just filled you second level. In order to gain any compensation rewards both legs must produce the same amount of volume or some companies require a two thirds/one third ratio. Example: A becomes a Business Center and signs up two centers, B & C. B & C must do the same for A to progress. B's downline does $2000 in volume and C's downline does $1000 in volume. When the pay period comes around, A is paid on $1000 in volume on each leg (B & C). C must produce an additional $1000 in volume within a given period of time (check this out) or there is no commission paid on that (additional $1000) amount from leg B.
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Hi Ty,
I would love to see a company-nuetral explanation in generic terms of how a vanilla 2up compensation plan works along with it's advantages. Do you have a blog on this? Would you be willing to write one?