There are 3 common reasons why the binary (MLM) plans are quite attractive to both distributors and companies:
1. The “spillover” concept attracts new distributors because technically, they can receive commissions by sponsoring
only two distributors and let uplines (those who signed up earlier) do the “spillover” for them.
2. Binary plans are quite simple to understand. This allows distributors to duplicate their effort easier, a necessary
tool to succeed in network/multilevel marketing.
3. Binary plan offers fast-paced growth opportunities, which attract the segment of our population who wish to “get-rich-quick”.
It
is said that there are only two types of motivation — greed or service to humanity. Binary offers a potentially quick
way to make money while providing a “service” that allows recruits to earn from the same method. Given the above,
it is understandable that more and more companies have adopted the binary compensation method to attract new distributors.
