There is a lot of talk in the network marketing industry on which is better: binary or matrix compensation plans, but there is a secret to earning more with MLM. Here is Why You Wont Make Money with Matrix or Binary Comp Plans in network marketing and direct selling businesses.
I have been in both types of multi-level marketing (MLM) companies, one had a matrix that compressed every month and I could make money from anyone that fell into my matrix – it was a 2×14 matrix with over 32,000 spots, so if I filled up all 32,000 spots I would make $32,000 a month in residual income.
I have also been in binary MLM companies, where you can get paid down to infinity by matching group binary volume between legs. So, if I had 100k BV on the left leg and 100k BV on the right leg, I could make $15,000 a month, whether those people on my legs were recruited by me or not.
So, which is better for MLM money making?
Here is the problem with both:
With a matrix, people tend to join these because you can get paid without recruiting – you can get paid if your sponsor or his sponsor recruit a lot of people because their recruits will fall into your matrix.
I waited over a year to see this matrix grow, but most of my upline quit, and people that I brought in were mostly waiting for their upline to do the work – so, after waiting over a year and recruiting over 100 people myself – I got paid $130 a month – yes, $130 a month. That is it, even though I invested a lot of effort and recruited fairly a lot of people. Most people were waiting for the magic matrix to pay, so they didn’t recruit.
With the Binary, you have two legs – the right leg and the left leg. One of your legs (the big one) is called the Powerleg. This leg can be built by your upline and his team, which will help you out if you build the smaller leg, called the pay leg.
When you balance the binary volume between legs, you get paid on the smaller leg, that is why it is called your pay leg.
Example:
Power leg has 2,200 Binary BV
Pay leg has 1,000 Binary BV.
You get paid on the 1,000 = $150 @ 15%
So, with the Binary plan, you have to build out your small leg by recruiting. But, once you get a team going on your small leg, you can make really good money if your power leg is rocking also.
The problem with Binary is that you have to usually recruit a lot of people.
The problem with matrix is that your upline need to recruit along with you.
Cash Creation Conclusion
There is no free lunch in either pay structures. Most people who are new to MLM think that there is a magic formula, and if they join a matrix they will become rich without recruiting, but as you can see matrix doesn’t pay because everyone is usually waiting for someone else to do the recruiting. And, Binary doesn’t pay unless you recruit, so don’t make this business mistake.
So, bottom line is:
They are both powerful plans but you have to build your team and business like a real business and stop waiting for a free ride. Business doesn’t work that way, unless you are in an illegal ponzi scheme, and even those get shut down before it gets going.
So, learn how to generate leads and recruit consistently month after month so your MLM team and check will start to grow. Then, the money will surpass your efforts and you will be lying on the beach somewhere thanking your higher power, your team, and your commitment to taking this business seriously and hanging in there when it got tough.