how binary works...


Introduction to Binary:
The binary system begins when you sign up as a representative of a networking company. There are usually multiple ways you can sign up and each position typically has a different compensation package but the basic binary structure is always the same.

In this tutorial I will describe how the basic binary works and some of the strategies you can use to grow your business. Since so many companies have differing pay cycles and bonuses, I will only describe basic binary rules that apply to the majority of networking companies compensation plans. After studying this page you should consult your sponsor or upline leader for more specific training in the nuances of your company's plan.

Balanced Vs. Unbalanced
BALANCED
All binary programs must use some type of a matching or equalization formula to calculate your commissions. These formulas are in place to encourage you and everyone else to build their business by recruiting more distributors and customers. Each of your legs create business volume (BV) as they grow and each leg has a percentage of payout depending on your PIN level, if and only if the other leg fulfills the matching or equalization requirement. Some binaries use a 50/50 match (commonly referred to as a "Balanced" binary) meaning that you have to keep both legs as equal to get paid. If the equality gets unbalanced, you only get paid on the shortest of the unbalanced legs. (Example: To capture and get paid for $400 of new BV on your left leg, you must match it with $400 in new BV on your right leg, and if you happen to get $800 BV on your right leg, it will likewise take an additional matching $400 again on your left leg to balance it and get paid for the additional $400).

UNBALANCED
Other binaries programs are purposely "Unbalanced" which cause you less work for more pay.
For example: The Bio Performance binary is a 1/3 : 2/3 match binary, meaning that by matching one third on one leg, qualifies you for a payout of two thirds on the other leg. (Example: To capture and get binary pay for $400 of new BV on your left leg, you only need to acquire or match it with $200 new BV on your right leg.)

Learning the Binary System:
As you start your Network Marketing business your downline will probably begin start with one available position on your LEFT and one available position on your RIGHT (if you were taking over someone's position {it must be allowed by your company} or if you were signed into the downline for sometime before you actually viewed it, you may already have people in position(s) under you). You or someone above you can place one and only one person in your immediate left and right positions.

YOU
__|__
/        \
  YOUR LEFT        YOUR RIGHT
 

After those positions are filled, new members of your team will be placed by you or people above you, in a left or right position UNDER your primary left and right legs. These positions can be filled by you as you recruit new distributors, or by someone above you recruiting a new distributor, or by one of the people you have already recruited who is recruiting a new distributor.

YOU
_____|_____
/                     \
/                           \
/                                  \
/                                        \
  YOUR LEFT                           YOUR RIGHT
/            \                               /          \
/                \                           /              \
 LEFT              RIGHT              LEFT            RIGHT



Strong Leg vs. Weak Leg (Power Leg vs. Money Leg):
If you are lucky enough or strong enough to sign up under a strong team, this is where being in a powerful downline can really pay off. Powerful recruiting teams use the "TEAM" approach (Together Everyone Achieves More), and the binary system is the most effective program to capture and harness that spirit in your behalf. No one wants to work alone and as part of a powerful recruiting TEAM, no one should have any reason to do so.

KEY CONCEPT:
When you first start your business, you may hear people talk about their "Power Leg" (or Strong Leg) and their "Money Leg" (or Weak Leg).  The most important strategic move to remember in a "Non Balanced" binary is that your Power Leg is always your Leg with the most Business Volume (BV) and usually the most people, and your Money Leg is always your leg with the lesser Business Volume and usually has less people. Also keep in mind that you only get paid by the size of your SHORTEST (or least volume) LEG, ergo it's nickname the MONEY LEG.

At first your Power Leg will be the leg which is on the same side on which your sponsor placed you in their downline genealogy (i.e., if your sponsor placed you on their RIGHT Leg your Power Leg will initially be your right leg and your Money Leg will then be your LEFT Leg).

This is because as your sponsor (and possibly others above you) recruit more distributors into the business; as they decide to place a new distributor on their RIGHT LEG, they may place them under YOUR right leg. YOUR RESPONSIBILITY then is to build your Left Leg.

At first your power leg may be slow to grow, but in time as people above and you have recruited below you recruit more and more, you will see your power leg expand very quickly.

You company may employ a 50/50 or 1/4 to 3/4, or a 1/3 to 2/3 binary ratio. In other words, in anything that is non balanced your short leg (money leg) only requires the lesser amount in growth of Commissionable Volume (some times referred to Business Volume {BV}) to get paid on the greater portion of the BV on your power leg.

Not taking into account the possibility of matching income bonuses, after fulfilling the minimum "Per Leg" sign up requirements of your particular compensation Plan, you might initially consider your money leg as the primary placement leg and your power leg as your alternate.

A GOOD RULE OF THUMB FOR THE BEGINNER: Work and build just the opposite as you may think! Work more on your money leg than on your power leg.

PLACEMENT: When placing a person on your either leg, you should generally place them to the farthest OUTSIDE position as possible, unless of course you need to place a particular person under someone not on the far outside (i.e., if you recruit a Hispanic person you may want to place them under your Hispanic group which may NOT be on the extreme outside. You do this so that all of your Hispanic people can work as a team and support your new person). If you keep this in mind, practice it and teach it, your legs will grow faster very little work from any one person and everyone on that leg is encouraged to continue to build to capture and get paid from the volume created by your placements.

As your downline develops you will notice that your money leg and your power legs may interchange from day to day, week to week or month to month due to more activity on one side at a particular time than the other, so you must be diligent in watching where you place your time and new people.


Advanced Placement Binary:
Most binary systems allow you the option of setting up an automatic placement system in your back office and this one is no different. You can set your back office up so that when you recruit someone, or when someone recruits them self from your website, the computer will automatically place them on the leg of your choice. This is done to expedite the placement of individuals in case you are on an extended business trip, vacation, retirement, or any other reason you can think of.

 



The LINE LOCKER:
The line locker is a name given to a person who is working and recruiting but was recruited into a sleeping downline from someone above. This sleeping downline could be generations deep of people who have quit the business or have never really gotten started. The line locker will begin to build their own business which causes Business Volume to flow upward through the genealogy tree. People above this person who are not working and recruiting in their own business are then encouraged to build their business and "flesh out" their genealogy because they are leaving money on the table by not doing so. This person becomes a driving force for those above them and therefore the name LINE LOCKER because this dynamic individual (with help from a wise upline) LOCKS the potential of the entire line up and everyone wins by then building their business.



BODY BUILDING Binary:
Body Building is a unique and easy technique to help you build your business one bite at a time. This class and other strategies are taught in the Advanced Training classes offered by GlobalWaveMakers.



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