MLM comp plans.. help!

I used to try MLM but it usually works if you are in the top. Of course some people are crushing it. I think they explain by what they mean by binary or matrix but I guess binary means everyone will only have two downlines (width) with unlimited depth or something.

I like the binary pay plan because it usually doesn't require you to sponsor a million people.I am in one now where I signed up on Monday and have over 60 people under me through my upline efforts.I have yet to start marketing.One guy in this program has made over $700,000 within the last 4 months He only sponsored about 30 people personally.

Thanks for your response. I was asking because I am planning to build my own. I just found the team that built Empower Network's software (which has basically the 2-up comp plan) and am talking to them about a similar platform. They want a pretty good amount of money to build it, but it's less than 10k and hopefully I would make more than that if everything goes as expected. I know EN has paid out over a million to affiliates by now.

I have listened to 20+ MLM presentation and even today I don't understand it clearly maybe that is how they suck so many people in (or maybe I"m just to dumb). In any case this is how I approach it, if I like and use the product I sell it and get what's I get. For example I sell Sendoutcards I get paid but I have no clue how they calculate the thing. The guy who signed me up spoke at a seminar I watched hi presentation 3 times, talked to him, talked to his upline a few times and I don't understand it, but I sent thousands of card the product it fantastic so I use it payout I get is a bonus.

I guess what I'm saying if you like the product and are not ashamed to sell it then that is the bigest part of the deal, what I have seen is that the product is the signing up and taking of the fee not the product and it's masked in this complicated scheme I stay away from it.

Hope this helps.

You guys sure are quick to make assumptions about people and their intentions on this forum, when in fact you have no idea what I have in mind and how many people it will help. I don't intend to create a pyramid scheme or ponzi but rather a system that simply makes it the easiest for everybody to succeed. It's obviously that many of you are opposed to mlm style businesses, so maybe I will just stick with a regular affiliate program for now. However, a lot of people have actually made money with EN and other mlm businesses, and not everything you read on the internet is true. Almost every program out there will have tons of people blogging about the program being a "scam " when those people haven't even tried the program theirselves, and usually they haven't even done much research on it. People come to conclusions so easily simply because they don't fully understand things.

I never owned or joined a binary program so I don't understand the concept of a binary.

However I fully understand matrices.

You can have as many levels across or down.

Most scripts only allow 10 persons across and 10 persons down.

You set a membership fee.

Persons on level 1 are paid a portion of the membership fee.
Persons on level 2 are paid a portion of the membership fee, and so on down the line.

Example if the membership fee was $25
Level 1 gets $10
Level 2 get $5
Then the admin profit would be $25 - $10 - $5 = $10 for each person that signs up.

Each new person entering the matrix, a portion of their fee goes to the members at the top and the rest of the fee goes to the admin.

This happens until the persons at the top of the matrix have filled up all their spaces.
Then the next persons at the top get their share, etc.

The best and most lucrative way to make money with MLM is to lie, deceive and con people. Some of the most successful MLM people, are good at deceiving and conning people.

If you're an honest person looking to make money with MLM, stay away from it, you wont make money, and you will most likely get taken to the cleaners by someone who knows how to play the game.

here is my favorite reading about MLM, and probably one of the best articles ever written and posted online.
What's Wrong With Multi-Level Marketing?

I think Gary Halbert summed up MLM best right here...

The Gary Halbert Letter

One thing I will say is that MLMers are a great market to sell to, they've been pre-conditioned to buy based on what their uplines told them. You can make a lot more money selling to them than joining them.

Glad you asked this question I was wondering what all those different MLM terms meant too!

The one thing I like about MLM is although there may be competition, there is also leverage and teamwork. People without much experience can still succeed through the efforts of people in their downline. You could refer just one person who has a large list or experience in marketing or simply has money to pay for advertising, and some of that person's sales would be passed up to you, not only making your money back but also being in profit. I like the concept of leveraging other peoples efforts and teamwork. As said above, MLM requires a different mindset and understanding than a regular affiliate program. I think that's why many people are opposed to MLM and assume all MLM must be a "pyramid scheme" or illegal - simply because they don't have the right mindset or fully understand it.

Guys I must say that I was trying everything in internet marketing, and the only thing where I can see the future and where I made first serious money is in MLM

If a MLM company is using binary system, you need to get at least 2 active members who are serious to build their groups. You put one into your right leg and another into your left leg.

I just came across this thread, and although it seems dead, I didn't notice whether anyone actually answered the question that was originally posted... so I thought I would post an answer in the event anyone was still wondering.

I'm not sure what a Board Comp Plan is, but here is a very basic overview of my understanding about how Matrix and Binary Comp Plans are run - Also, although years ago the Binary got very popular for a while, I never really liked it much, and I really don't like the "Australian X-Up" plans either - so I guess I would prefer the Matrix, to answer your question.

Hope this helps

MATRIX -


A "matrix", which can also called a "forced matrix" is a pyramid type structure - for example, a 2 x 3 matrix is where each person who comes into the program, will need to "Sponsor" or "Recruit" 2 people, and basically they will be "Paid" when they Get 2, Who Get 2, Who Get 2 - A Matrix Scheme can theoretically be in almost any combination: 2X2, 2X3, 3X3, 4X5, Etc...

NOTE: Basically, If These Comp Plan(s) Are Paying Out More (or Only) Money For Referring or Recruiting Others, then it is Paying Out For The Actual Sale Of Products or Services, The Program May Very Likely Be Considered A Scam... by the FTC and/or the FBI.


BINARY -

A "Binary" compensation plan is usually structured using 2 "Legs" - a Right Leg and a Left Leg - one is typically called a "Power Leg" and the other, the "Money Leg" or "Profit Leg".

The Power Leg is the first position where someone's first New Member will automatically be placed, and a Power Leg can be filled with members extending from Up-Line Members (sometimes termed "Spill-Over") down through the newest members, which can sometimes extend a Power Leg hundreds or even thousands of members deep...

In order for someone in a Binary Plan to be paid, they will normally be Required to Recruit (at least) 1 person into the Power Leg, and others into the Profit Leg, and will typically begin to be paid when the Power Leg and the Profit Leg reach a certain "Matching Volume" - which is basically a percentage of the Power Leg to the Profit Leg - i.e. typically on a 1/3 or 2/3 basis or on a percentage basis, meaning you will get paid a specific amount of money each time you generate a certain percent or volume between the "Legs", as long as you have an equal or greater percent or volume in your Power Leg. For example, you could be paid if 60% of the volume required is in your Power Leg and 40% is in your Profit Leg.

Something like that... Have A Nice Day!