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Need help designing a binary plan

by TraderAgency
7 replies
Ok... So I figured I get some inputs from other marketers and MLM'ers before I design my binary compensation plan.

What would you as a marketer like to see in a binary compensation plan?
#binary #designing #plan
  • Profile picture of the author Jeff Burritt
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  • Profile picture of the author Alexa Smith
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    Originally Posted by TraderAgency View Post

    What would you as a marketer like to see in a binary compensation plan?
    Something that my lawyer tells me will withstand all foreseeable legal and regulatory scrutiny, and a company that demonstrably makes a minimum of 70% of its sales income from genuine retail sales to genuine retail customers who aren't themselves distributors, affiliates, associates or otherwise involved in the business opportunity at all (because without being compliant with "the 70% rule" for the industry, however the details of "binary plan" work, it isn't going to survive for the long-term anyway, as it wouldn't be legal). That would be my basic starting-point, for wanting to know more.

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  • Profile picture of the author TraderAgency
    Thanks for the tips .. Well my company is product focused and our products and services actually have a demand and value. I am skeptical about using the binary plan being in the US as I don't want to attract regulatory attention and scrutiny which I heard comes easy using a binary plan.
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    • Profile picture of the author Alexa Smith
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      Originally Posted by TraderAgency View Post

      I am skeptical about using the binary plan being in the US as I don't want to attract regulatory attention and scrutiny which I heard comes easy using a binary plan.
      Maybe so ... but eventual regulatory scrutiny is inevitable anyway, if you promote an MLM, whatever its comp-plan. However you look at it, you need to have taken the right kind of legal advice at the outset to ensure that you're fully compliant.

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  • Profile picture of the author HelpingYouBeAnExpert
    If you decide to do MLM you better get some big law help on your side, I know one guy who pitched me an MLM he put money in it and his friends the company wet bust feds all over it. The MLM that has done it good is the ones who focus on product NOT COMPENSATION but you can't get through to the 99% they all just talk about the compensation. In any case I'm a member of Send Out Cards MLM it's fantastic because they don't' care about compensation they care about the product! They are the only ones that I have seen that has gotten it right in the MLM world all the others ones (I"m sure there are exceptions) suck at this and I just can't stand their binary pitches makes me want to puke.

    Like I said if you do this look at Send Out Cards and get much much much much VERY VERY VERY expensive legal help. Good luck.
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  • Profile picture of the author TraderAgency
    My products and services are great and I really don't even need to go with MLM, yet I decided to utilize this model for the added exposure and growth potential. Many companies get in trouble because they create a compensation plan and than add some bogus product to the mix to avoid being called a "pyramid" scheme.

    I think I may just go with a simple 7-8 level deep affiliate program to avoid problems with the binary and scrutiny I may face because of it.
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    • Profile picture of the author Alexa Smith
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      Originally Posted by TraderAgency View Post

      I think I may just go with a simple 7-8 level deep affiliate program to avoid problems with the binary and scrutiny I may face because of it.
      If commission payments on the sale of the company's products are "divided between multiple levels" then it's going to be an MLM company, however you look at it. So eventual regulatory scrutiny is inevitable.

      Anyway, I'm sure you know enough about this to appreciate that changing your proposed comp-plan from a binary to a unilevel, or a breakaway, or whatever else, isn't a substitute for taking appropriate specialist legal advice before you start.
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