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Wednesday, October 24, 2012

BINARY 101: IS LEADERSHIP MATCHING BONUS THE BEST?


There is a variant of Binary compensation where you will earn certain percentage of your downlines 'binary income' up to certain levels of generations. I can say the proverbial "I have been there, done that" when I remember Portal Innovations who initially owns LoadXtreme before VMobile.


During that time, I have included in the compensation prog
ram the Supreme Leadership Award which is a way to earn from the BINARY INCOME of your downlines up to 3rd generation. I thought that this would counter the weakness of Binary requiring two teams before you qualify to earn commission. The effect is actually fantastic and applauded by subscribers of Portal then. Imagine earning in the Binary program with only one leg because it so happen that your downline is a power networker and earning a portion of his income (say 10-20%) is far better than traditional Binary. However, this prove to be disastrous for Portal Innovations as it requires more payout allotment.



Let us assume for example that as a Binary program designer, you want to give 10% binary matching bonus from first level down to the fifth level and your Binary compensation pays P500 per matched sales or pair with a maximum daily payout of P20,000 per account. You would tend to think that you are only paying P500 per pair, right? WRONG. 10% of P500 multiplied up to 5th generation will force your to pay P750 per pair.



Now, let us say you want to give 20% per level up to 5th generation. That is in effect DOUBLING your BINARY PAYOUT because 20% multiplied up to 5th generation is equivalent to P500 which is in addition to the basic P500 per pair earning. This is in effect paying P1,000 per pair. If you have not considered this in your payout allocation, your BINARY PROGRAM is doomed to FAIL.



Before making a decision in joining a BINARY COMPANY, make sure you have looked into EVERY ANGLE and you have pushed the numbers. You don't want to be putting your name at stake just because you failed to conduct due diligence of the program. ---- Ismael Bengco III

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