Comments on: 13 Reasons Why Binaries Do Not Work for MLM

By: tim

tim — Fri, 30 Oct 2009 19:34:55 +0000

hey
my wonderful wife, that i love dearly, has gotten involved in Monavie, much to my displeasure. I think i am grasping why this binary crap is so bad thanks to this site. But i have some questions, and was hoping someone could help me out. Monavie hands out a “Income Disc. Statement” based only off the distributors that meet a certain criteria. One of these criteria is that they have recieved “one non-retail bonus”. I am having trouble figuring out what it takes to get this non-retail bonus. Im not an idiot, but i dont have have alot of business experiance. Any help would be sooo appreciated. my email is timb_73@hotmail.com

Its very funny that they show everyone the inc. disc. statement but it is only based off a small percentage of people. shop-minvie.com states that 91% of people are not considered distributors. So that means the inc disc. statement is only based off of 9% and then only 6% or so of that even make enough money to pay for their juice. So using my math, that works out to be about a 1/2 percent of people involved in monvie break even. But my math may be wrong.

Thanks so much

By: Andrea Pekarik Welch

Andrea Pekarik Welch — Wed, 28 Oct 2009 23:12:34 +0000

GREAT ARTICLE. Being new to network marketing, I am one of the lucky ones who has chosen the right company to begin my career…XanGo! NO hidden agenda, fair to everyone and a company that is built to last.
Andrea Pekarik Welch´s last blog ..Are You NAME Forgetful? ….Nine Tricks to Help You Remember

By: Carol Ferrier

Carol Ferrier — Mon, 05 Oct 2009 23:50:38 +0000

John thank you for taking the time to put together this detailed analysis of a binary and why it fails us. I have been fortunate that from my earliest experiences in networking, my mentors taught the perils of this type of plan. I appreciate you articulating these details. So many have been drawn by the “spillover” myth, and other issues you covered so well. Hopefully with your imformative, thoughtful article people will save themselves the disappointment and frustration of selecting a company with this type of marketing plan…no matter how good someone sells it!

By: Susie Bottomley

Susie Bottomley — Tue, 15 Sep 2009 14:46:27 +0000

What strikes me most about this blog is the generosity of our founders. Who else is realizing that by making sure the field succeeds, the company will succeed by leaps and bounds? For many of us who have tried several companies before finding ours, it is almost shocking to have the simplicity of an honest, fair compensation plan! Words like “pays up to…,” and “breakage” and other tricks to stack the deck mean all the difference in the world. Network Marketing can be such an elegant business with the right company. I count my blessings regularly to have found a company that wants me to succeed! Thank you John for exposing binaries. I hope it saves some people from wasting their efforts and becoming bitter at this industry.

By: Robin Edgar

Robin Edgar — Sun, 13 Sep 2009 21:43:39 +0000

John – This is great information since most of the people I am talking to are with a company that has a binary. It seems that when people are early into working with a company they like the binary since people feel like they are really making money. The problem is when they are trying to build a lifetime business the binaries don’t last. Thanks again for your great work on this important piece. See you in Salt Lake City. Robin

By: Susie Bottomley

Susie Bottomley — Sun, 13 Sep 2009 18:37:51 +0000

I was with a network marketing company that had “breakage.” It was explained that breakage (money left on the table by unqualified distributors that goes back to the company) is necessary because it takes care of the company. It is so refreshing to be working with a company that takes care of the field so that as the field really succeeds the company grows by leaps and bounds. It works both ways. Xango has created a true “WIN-WIN-WIN” compensation plan. The field, the company and the world all win!
It saddens me that binaries can do so much damage to such an elegant industry. Our world needs it right now.
Thank you John for shedding light on this subject and thank you Xango!

By: Michael Teske

Michael Teske — Sat, 12 Sep 2009 19:48:35 +0000

Thank you for the post! I, myself, fell victim to a company with a binary pay plan sometime ago because I loved the product. The company started out with a matrix compensation plan, changed to a hybrid binary; and then converted to a full binary, all within 6 months of my being associated with it. How disheartening and frustrating! Needless to say, I had enough sense to move on, but only after 6 months of wasted effort!

By: John Godzich’s post on MLM Binary compensation plans « Michael Teske

John Godzich’s post on MLM Binary compensation plans « Michael Teske — Sat, 12 Sep 2009 19:30:22 +0000

[...] post on MLM Binary compensation plans By michaelteske I just read John Godzich’s post 13 Reasons Why Binaries Do Not Work for MLM, which is a must read for anyone in the network marketing [...]

By: Ruthy Tyre

Ruthy Tyre — Fri, 11 Sep 2009 01:16:40 +0000

Thanks for the great information. Every network marketer needs to read this. As Bob Schmidt would say, “Knowledge is never a disadvantage.”

By: PJ Stratford

PJ Stratford — Tue, 08 Sep 2009 04:18:25 +0000

Thank you for the informative essay on binary compensation plans John. For me, they seem to lack integrity. The nature of the plan encourages the distributor to focus more on being self serving, instead of building relationships. It seems to me then, that the business will be short lived, and you’ll soon be looking for another opportunity. Might be right for some. For my time and effort, I prefer building relationships that empower others to succeed and all going to the top together. It feels like a stronger foundation for long term financial benefit too.