how binary works autoprofit team june 2007 how binary works this presentation shows you how a binary...

How Binary WorksAUTOPROFIT TEAMJune 2007

HOW BINARY WORKSHOW BINARY WORKS

This presentation shows you how a BINARY PLAN works . . .



• What is a Binary Plan?• How do you build a Binary?• How does the BINARY PLAN

compensate a distributor?• COMMON CONCERN: “I can’t balance”• COMMON CONCERN: “The Binary is a

pyramid!”

TOPICS



A BINARY PLAN is a compensation plan used by network marketing companies to compensate their

distributors. Let me explain...



Distributors are independent business owners who are paid

commissions for making ‘referral’ sales of products and/or services to network marketing companies



Commissions to distributors are paid based on their efforts in accordance with the network

company’s compensation plan





pyramid!”

TOPICS


YOU

In a BINARY Compensation Plan, you build TWO teams of distributors

One Team on the RIGHT

One Team on the LEFT



YOU

For example, if you sponsor TWO distributors: A & B

You place B on the RIGHT

You place A on the LEFT

A B

You can place A on the LEFT and B on the RIGHT


YOU

Now. . . if you sponsor THREE distributors: A, B & C

You place B on the RIGHT

You place A on the LEFT

A B

Where do you place C?


YOU

A

Can you place C here?

BC


YOU

A

Of course NOT!

BC


A

Then where can you place C?

BC

YOU


A

You can place C either under A or B . . .

BC

YOU


A

You can place Cunder A or . . .

B

C

YOU


A

. . . you can place C under B.

B

C

This is known as the ‘spillover’ effect. More

about this later. . .

YOU


YOU

A

In fact, there are 4 possible positions that

you can place C.

B

C C CC



Now, let’s take a look at how does the BINARY PLAN compensate a distributor...





pyramid!”

TOPICS


YOU

Usually the company pays you when you achieve certain

volume in both your LEFT and your RIGHT teams.

RIGHT Team LEFT Team



YOU

Let’s say the company pays $40 you when you have 3

distributors on your LEFT and 3 on your RIGHT. . .

3 distributors 3 distributors


YOU

A

You will earn $40 when you personally sponsor 6

distributors A to F and place them as shown

B

C D FE


YOU

A

What if you personally sponsor 2 distributors A & B. . .

B


YOU

A

A personally sponsor C & D. B personally sponsor E & F.

You will still earn $40!

B

C D FE

A Personally Sponsored = DIRECT A INDIRECT


YOU

A

If you personally sponsor A & BA personally sponsor C & DE & F are personally sponsored by your sponsor (SPILLOVER). You will still earn $40!

B

C D

F

E

SPILLOVERFrom your sponsor


YOUR SPONSOR


YOU

A BC D FE

Let’s SUMMARIZE . . .

It does not matter who sponsor the 3 on your LEFT and 3 on your RIGHT. You will still earn $40 whether

they are DIRECT (personally sponsored) or INDIRECT

YOU

A BC D FE



YOU

A BC D

FE

Let’s SUMMARIZE . . .

It does not matter how the 3 are placed on your LEFT and 3 on your RIGHT. You

will still earn $40 provided. . .



YOU

A

However, many companies only start to pay when you qualify for commission. . .

B

To qualify, you just usually need to personally sponsor 2

distributors A & B. . .one on the LEFT and one on the RIGHT


Yes! Because you personally sponsor

3L & 3R


YOU

A BC D FE

YOU

A BC D FE

Do you qualify for commissions?

Click for the answer...




1L & 1R



1L & 1R






No! Because you personally sponsor

1L ONLY!

YOU

A BC D

FE

SPONSOR

YOU

A BC D

FE

SPONSOR



1L & 1R


Now you personally sponsor G. Do you

qualify for commissions?


YOU

A BC D

FE

SPONSOR

G


POP QUIZIf you have personally sponsored A & B and

have 2L & 4R, will you be paid?Click for the answer


YOU

A BC

ED

SPONSOR

F


That Depends!1) NO! For those companies that pay only when

you balance EXACTLY!2) YES! For companies that pay you even when

you have a 1/3 – 2/3 balanceLet me illustrate further . . .


YOU

A BC

ED

SPONSOR

F


Personally Sponsored = DIRECT INDIRECT

For companies that pay only when you balance EXACTLY

Pays $$!

Does NOT Pay!

YOU

3 3

YOU

SPONSOR

2 4



For companies that pay even when you have a 1/3 – 2/3 balance

Pays $$!

YOU

3 3

YOU

SPONSOR

2 4

Pays $$!



For companies that pay even when you have a 1/3 – 2/3 balance

Pays $$!YOU

SPONSOR

2 4



Now, let’s see at how much can a BINARY PLAN compensate a distributor...


How much does a BINARY pay you?

YOU

A BC D

FE

Let’s say the company pays $40 when you have 3L & 3R – this is

usually known as a CYCLE

3 3 $40



YOU

The company continues to pay $40 for every cycle of 3L & 3R...

3 3 $40

3 3 $403 3 $40



YOU

Imagine your network grows to 300L & 300R after some time...

300 300 $4,000Your commission will MAX out

at a certain amount ...



YOU

Eg. The company may pay you for a MAXIMUM volume of 600L & 600R per week – that will be

$8,000 per week...

600 600 $8,000

If your network grows so BIG that you exceed that, you will

receive the MAX payout!



YOU

So, how do you earn more than the MAXIMUM volume of 600L &

600R (or $8,000) per week?

600 600 $8,000

Simple. Have TWO OR MORE accounts!!



Let’s address one COMMON concern of a BINARY PLAN...





pyramid!”

TOPICS



Have you ever heard someone said?

“I can’t BALANCE ... because one leg keeps growing!”



Ask them this question:

“How many distributors do you have on your WEAK leg?”



If they tell you this:

“Zero!”



Now, you know the truth...

They CAN’T BUILD, not becausethey can’t balance!


This is how their network looks like...

How do they balance when they can’t build?

THEY

B

ED

SPONSOR

F



Let’s address another COMMON concern of a

BINARY PLAN...





pyramid!”

TOPICS



Have you ever heard someone said?

“The BINARY is a PYRAMID!”



Tell them this:

“Yes! The STRUCTURE of a BINARYis a PYRAMID!”



Every organization of some size has a PYRAMID structure!

“The GOVERNMENT has apyramid structure!”

“The CHURCH has apyramid structure!”



“A large COMPANY has apyramid structure!”

Every organization of some size has a PYRAMID structure!


HOW BINARY WORKSHOW BINARY WORKSThe truth is this:

“A BINARY Plan is very fair!Every one has the chance to earn

more than their sponsor...”

Have you ever come across acompany that you can earn

more than the CEO? I haven’t!


When you join your sponsor, you begin with ‘zero’... just like everyone else. Fair?

Eg. If your sponsor has 15L and YOU on her RIGHT...

SPONSOR

YOU15


What if you work hard for 3 months and build faster than your sponsor?

SPONSOR

YOU15

30 30

Eg. If your sponsor stopped building and YOU build 30L & 30R in 3 months...


How much do YOU earn and how muchdoes your sponsor earn?

SPONSOR

YOU15

30 30

As YOU have 30L & 30R, you will earn $400,more than your sponsor – who has 15L & 60R

who earns just $200!

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