MLM comp plans.. help!

35 replies
So I understand 1-up and 2-up but can somebody explain binary, matrix, and board comp plans? And which do you think is the best/most lucrative for everybody? Thanks!
#comp #mlm #plans
  • Profile picture of the author awledd
    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.
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    • Profile picture of the author Donbon05
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  • Profile picture of the author Garymgar
    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.
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  • Profile picture of the author gwpmike
    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.
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    • Profile picture of the author Tsnyder
      Originally Posted by gwpmike View Post

      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.
      The software and comp plan has very little to do with EN's "success"

      It has everything to do with their willingness to deceive and
      and hype... their illegal income claims are everywhere.
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      • Profile picture of the author gwpmike
        What does that have to do with me? I don't intend to deceive anyone or have false claims. I have been planning my network and business for over 6 years now. I have made money with EN but I highly believe I can create an even better system that would make it easy for a lot of people to have success. The only reason I am considering making by business have an MLM comp plan as opposed to a regular affiliate program is because it makes it easier for everyone to succeed. In a sense everybody has a better chance of having success through the success of people in their downline. You could bring in just one person who is good with marketing or has a big list, and you would make a lot of money from their sales passed up to you. I have quite a bit of experience in IM and I understand mlm comp plans, but I wanted to know the difference between binary and matrix.
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      • Profile picture of the author Saluki Guy
        Originally Posted by Tsnyder View Post

        The software and comp plan has very little to do with EN's the MLM industry's"success"

        It has everything to do with their willingness to deceive and
        and hype... their illegal income claims are everywhere.
        ^^^ fixed for accuracy
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        • Profile picture of the author Tsnyder
          Originally Posted by Saluki Guy View Post

          ^^^ fixed for accuracy
          You are clueless on the subject.
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    • Profile picture of the author Ron Smith
      Originally Posted by gwpmike View Post

      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 would suggest that your reconsider your plan to start a mlm business. If you don't even understand basic comp plans, what in the world would make you think that you could be successful in a very competitive business?
      The founders of Empower Network started as very successful marketers with huge following and then invested a ton of money in a start up that could very well have failed.
      You might want to try being a distributor first and get a better understanding of the business. If you like Empower Network's business plan, sign up and see if you can make it work. Personally, I was a distributor for EN and spent a lot more money than I made. And I actually have a pretty good understanding of mlm! The pay plan is still being refined by newer entrants into the competition and the competition for distributors is as fierce as I've ever seen.
      I wish you the best, but you need to really understand the business to have any chance at all.
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  • 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.
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  • Profile picture of the author gwpmike
    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.
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    • Profile picture of the author dewayneboyd
      Originally Posted by gwpmike View Post

      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.
      Sure, a lot of people have made money. But it's miniscule to the amount of people who lose money. Stop the nonsense. You sound like every MLM sales letter. Don't feel like explaining why MLM sucks. Pretty sure you won't listen, anyway.
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    • Profile picture of the author Tsnyder
      Originally Posted by gwpmike View Post

      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 everythir seenng 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 make no assumptions and I'm not opposed to the MLM business model. I've been
      quite successful with it for more than 30 years. EN is the most unethical and deceptive
      company I've ever seen in this business... PERIOD.
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      • Profile picture of the author Seemore25101
        Originally Posted by Tsnyder View Post

        I make no assumptions and I'm not opposed to the MLM business model. I've been
        quite successful with it for more than 30 years. EN is the most unethical and deceptive
        company I've ever seen in this business... PERIOD.
        So true. Many great MLM companies but EN is the company to STAY AWAY FROM!!
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  • Profile picture of the author aaaa33030
    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.
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  • Profile picture of the author Alex Blades
    Originally Posted by gwpmike View Post

    which do you think is the best/most lucrative for everybody? Thanks!
    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.
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    • Profile picture of the author Tsnyder
      Originally Posted by Alex Blades View Post

      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.
      Pure nonsense.
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      • Profile picture of the author Alex Blades
        Originally Posted by Tsnyder View Post

        Pure nonsense.
        Far from nonsense, those who can lie and deceive stand to make the most money from it. Name one honest person that is making more money than any of the top con artist at EN or PL?
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        But I knew the one thing I might regret is not ever having tried. "

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        • Profile picture of the author Tsnyder
          Originally Posted by Alex Blades View Post

          Far from nonsense, those who can lie and deceive stand to make the most money from it. Name one honest person that is making more money than any of the top con artist at EN or PL?
          I could introduce you to dozens but you wouldn't believe them anyway.

          The fact of the matter is that the truth is the complete opposite
          of your opinion. Liars and deceivers may make some short term money
          but they never enjoy long term success.

          The honest people in this profession will be making big money long
          after EN has folded its tent and moved on.
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          If you knew what I know you'd be doing what I do...
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          • Profile picture of the author Alex Blades
            Originally Posted by Tsnyder View Post

            I could introduce you to dozens but you wouldn't believe them anyway.

            The fact of the matter is that the truth is the complete opposite
            of your opinion. Liars and deceivers may make some short term money
            but they never enjoy long term success.

            The honest people in this profession will be making big money long
            after EN has folded its tent and moved on.
            Wait a minute, are we talking about EN or MLM in general? I know there are MLMer's who sell vitamins and stuff like that :confused: I get the feeling we are talking about two different MLM programs.

            The scary part is how much of a cult these things become, no negative posts were allowed in the Facebook group with people being banned for asking legitimate questions. They would have kissed old Vick the P***** ass if he had asked them.
            Lol, that is crazy
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            " I knew that if I failed, I wouldn't regret that.
            But I knew the one thing I might regret is not ever having tried. "

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    • Originally Posted by Alex Blades View Post

      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.
      I disagree, some are honest and good I belong to one so it's not 100% true, that being said there are tons to lie and deceive and they make tons of money. I was stalked at a few seminars by one just like you described trying to enroll me and I know he was lying about his numbers since I knew the owners but he got a few people at the seminar he was very very aggressive and said anything to get people to enroll. But not everyone is like that however they have destroyed the concept of MLM most people will not touch it because of deceptive scum out there, but not all are keep that in mind just many.
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    • Profile picture of the author prosperus
      Thats very harsh ? Looks as though you have been stitched up at some stage .However I totally disagree with you . Im in a hyrid social build offering 3 sources of income for $5 one time only Its team owned so I'm paid in real time and unlike most programmes out there the deeper the level the more money I earn.Im already earning after two days in.
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  • Profile picture of the author Adie
    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?
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    • Profile picture of the author rangersno1
      That was a good read mate. My experience with MLM was with Bad Idea Nevermind, I only joined to get the bonuses promised by its convicted conman founder and they still hadn't got round to uploading them by the time I left 2 months later.

      The scary part is how much of a cult these things become, no negative posts were allowed in the Facebook group with people being banned for asking legitimate questions. They would have kissed old Vick the P***** ass if he had asked them.

      Cheers
      Alan
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    • Profile picture of the author Tsnyder
      Originally Posted by Adie View Post

      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?
      If you believe anything in that article accurately depicts legitimate
      MLM companies you seriously know almost nothing about the business.

      But... that whole debate is off topic for this thread.
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      • Profile picture of the author Adie
        Originally Posted by Tsnyder View Post

        If you believe anything in that article accurately depicts legitimate
        MLM companies you seriously know almost nothing about the business.

        But... that whole debate is off topic for this thread.
        My belief is supported by my experience with a number of high profile MLM companies. Here in my country, more than a hundred of MLM companies were created and vanished in the last 10 years and I believe the same applies in other countries.... Most MLMs are like HYIPs (come and go)..

        I believe any program that ask for membership fee wherein members are benefiting from the registration fees of people below them is not sustainable and not a good business model..... If there is any MLM program that does not do this then I might get convinced.
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        • Profile picture of the author Tsnyder
          Originally Posted by Adie View Post

          My belief is supported by my experience with a number of high profile MLM companies. Here in my country, more than a hundred of MLM companies were created and vanished in the last 10 years and I believe the same applies in other countries.... Most MLMs are like HYIPs (come and go)..

          I believe any program that ask for membership fee wherein members are benefiting from the registration fees of people below them is not sustainable and not a good business model..... If there is any MLM program that does not do this then I might get convinced.
          There are no legitimate MLM companies where people are paid
          for signing up new people. Those would be illegal pyramid schemes
          in every country I'm familiar with.

          Once again... comparing legitimate MLM with HYIP schemes simply
          tells me you have very little knowledge or experience with the subject.
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          • Profile picture of the author Adie
            Originally Posted by Tsnyder View Post

            There are no legitimate MLM companies where people are paid
            for signing up new people
            . Those would be illegal pyramid schemes
            in every country I'm familiar with.

            Once again... comparing legitimate MLM with HYIP schemes simply
            tells me you have very little knowledge or experience with the subject.
            I think you are the one here with limited knowledge. Not all MLM business plans that offers a signing bonus are pyramid.. For example, FLP does not have a pyramid structure but it does ask members to pay so that uplines will get commission. So can you tell that FLP is not legitimate because it is offering signing bonus to the uplines? Same with DXN... The reason why it is called "multi Level marketing" is because people are earning from different levels of positions from uplines to down-lines....

            Tell me a legitimate MLM that does not ask a membership fee or does not require to purchase a product/kit/package and I will join.... (this question has been asked for years in work-at-home-forum and so far no one can give a satisfying answer.. maybe you can...)

            There maybe some MLM companies that does not require membership fees but they require you to purchase the product, kits, or some packages that your up-line will get some commission, but its still the same as there is no way to make money without purchasing these products. Same result - different method,. same business plan....
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  • Profile picture of the author Jonathan Mizel
    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.
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  • Profile picture of the author Lightlysalted
    Glad you asked this question I was wondering what all those different MLM terms meant too!
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  • Profile picture of the author gwpmike
    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.
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  • Profile picture of the author WarTiger
    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
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  • Profile picture of the author himanuzo
    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.
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    • Profile picture of the author Seemore25101
      Originally Posted by himanuzo View Post

      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.
      This is true BUT DO NOT rely on only two people. This is the "lottery" effect and will not make you any money. MLM is a recruiting industry and to make money, you need to consistently recruit even in binaries, and be duplicatable.
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  • Profile picture of the author MarkAtWF
    Originally Posted by gwpmike View Post

    So I understand 1-up and 2-up but can somebody explain binary, matrix, and board comp plans? And which do you think is the best/most lucrative for everybody? Thanks!
    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!
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