Friday, June 19, 2009

The binary Compensation Structure

The binary compensation structure is basically an unlimited depth, two-wide matrix. You can place only two people in your first level. Everyone else goes beneath those people.

Binary commissions are earned by accumulating a specified amount of sales volume. This sales volume may accumulate over an unlimited period of time.

There is no depth limit in the binary plan. Every sale will accumulate toward a specified amount of sales volume requirement. The number of levels between you and a given recruit is not important.

The factor determining whether you get a commission from that person is not what level he/she is on, but rather how much commissionable sales volume is generated in the levels between you and that person.

Each tracking position is divided into a left and right, and the binary plans issue commission earnings based on a pre- defined match of sales volume. There are no group volume requirements or quotas. Binary plans require legs to be balanced.

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Sincerely,
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