Home Companies Monavie Network Marketing Compensation Plans Part 2: The Binary Plan

Network Marketing Compensation Plans Part 2: The Binary Plan

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Company examples: MonaVie, Agel, Usana, Vemma, Exfuse.

History and definitions: Binary plans are built with two legs or teams and your ability to balance those two teams in order to be paid all of your volume. Some of the first Binary plans were 50/50 balanced so that you would only get paid on your volume when it matched exactly in each leg. When it matched up, you got what is called a "cycle" or a small amount of money based on the volume accumulated and matched up in each team.

Later companies moved to a 1/3 – 2/3 cycling binary plan where you would be able to cycle even though your team was balanced 1/3 in one leg and 2/3 in the other leg.

The newer binary plans do not cycle, but pay 10% on the smaller of your two legs, many times leaving large amounts of volume unpaid in one of your legs.

Commentary: In a binary plan company that had over 40,000 distributors, I set a record with the fasting growing team, top recruiter and fastest to diamond in the company history. So I know how to build a Binary plan. The problem was not my income, the problem was the income of the several thousand people on my team. It was laughable.

The smoke and mirrors of a binary plan is that in some cases, you have people on your team. Sometimes hundreds of people, yet those people rarely equate to actual income. This provides a new person with a false sense of success. The newest person sees people coming into their team, but no financial gain from those people. Companies are able to create momentum as a result of distributors getting a false hope by seeing one team grow even though they aren’t making any money.

Some companies also have high product purchase requirements (up to $250) that many times leads to bottles stacking up in the garage as they hope for the future.

The good thing about the binary is the ability to create momentum and excitement over a short period of time. The bad thing about the binary is the reality of so many people losing money each month with a false sense of success.

Binary plans are also very back end weighted. They pay a handful of people really well and leave the vast majority of the distributors starving.

11 COMMENTS

  1. Great post Ty – I was looking for a good explanation to the Binary plan and came across your blog. Good stuff and glad I found it.

    Thanks for sharing since you experienced it first hand.

  2. Hi Guys
    I love a lot of your stuff
    it’s good to promote the industry
    your blog on binaries is not really fair in my opinion. Sure Agel and Monavie are examples
    of binary plans designed to pay a top few most of the money that’s not the fault of the binary system it’s their loops and hoops and their intention of the management
    also yes I’ve worked binaries for 20 years love them never worked Usana but they are totally different to other binaries (Usana is an really old binary and has a very low max payout per income centre). Just like unilevels or breakaway plans the “devil is in the detail” we need to look at the whole plan. Binary plans generally do have real benefits and tend to create more team work having the opportunity to be paid in unlimited depth.
    anyway keep up the good work i enjoy your blogs

  3. Ty
    I am a Monavie distributor and I feel you have hit the nail on the head. I have loved your blog for years and respect your perspective on the industry. I did notice that you have not reported on Bazi Xelr8 terminating all of their distributors. They are apparently going retail. You may want to look into it.

  4. I have never been very fond of Binary comp plans. I feel they limit the size that your business can grow to. Thanks for putting this post on here though, it was a good refresher.

  5. I want to build my binary 6 legs wide. My upline will not let me. They are Losers.They are afraid I will pass them. I am a winner.

  6. Binary plans have created the fastest growing companies in the history of the industry, the biggest checks in the shortest period of time, and the biggest incomes in the industry for building the fewest number of legs (there’s no way you’d earn $1 million a year or more for building just 2 legs in any unilevel or stairstep plan. (Matrix plans have historically never worked, the sole exception being Melaleuca.) Contrary to popular opinion, binary plans do not favor the big hitter, they are not geared towards paying a select few, they don’t limit the size your business can grow, they are not back end weighted, and companies with binary plans don’t go out business any more often than those with a unilevel or stairstep plan. In fact, historically, far more companies with a matrix, unilevel, or stairstep plan have gone out of business than those with a binary plan. If you can’t build 2 legs in a binary, you’re certainly not going to build the 5-10 legs that typically you’ll need to in a unilevel or stairstep plan in order to earn a sizable income. The reality is that around 20% of people qualify to earn checks, regardless of the pay plan. I’m a fan of Ty’s, but his overview of binary plans leaves a lot to be desired. Of course I’m biased as I helped to pioneer the binary pay plan concept around 20 years ago. One thing is for certain-the binary plans of today have evolved and many of the original design flaws (being one legged and not being able to make money) have now been eliminated with features such as matching bonuses (even if you are one legged, you can still earn an above average or even extraordinary income provided you sponsor a few productive people.) In a typical unilevel or stairstep plan, you won’t make a dime with just one productive leg because you don’t have the width to be able to earn on the depth…for the average person, provided the binary plan is supported by a quality, consumable product, it is the only pay plan that makes any sense.

  7. Interesting perspective. There are many elements in binary plans. I’m a huge fan of our binary plan that has created 119 millionaires in 12 years and whose sales are expected to at least double in 2015. We are predicting at least 15 more millionaires to be announced within the next few months. We have 20 year olds who have retired from corporate America. This is working. I enjoy your articles and appreciate your support of this outstanding industry.

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