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Compensation plans are the fundamental foundations of network marketing companies. It defines the very essence of a company; how it works, how the distributors are placed, how the commissions are calculated, and how the team grows. For beginners in the direct selling industry, it is important to have an in-depth knowledge of the binary MLM plan as well as the other leading compensation plans. While choosing an MLM plan, it is also important to understand its flaws. Let us discuss some of the disadvantages of the binary MLM compensation plan.

Binary plans can be employed with a ‘flush out’ feature. This flushes out the additional sales in the stronger leg, which would otherwise have been carried over to the next sales cycle. Certain organizations can nullify the spillover preferences, thus downlines placed automatically by the system. The weaker leg based commission has a drawback. Inactive weaker legs can negatively affect all the efforts and hardwork of the distributors in the productive strong legs. It is always important to maintain the balance between the legs. Reduced performance in the weak legs can affect the overall performance of the team and result in distributors quitting.

It is imperative to understand the ups and downs of a compensation plan before choosing one for you. Some of the top direct selling companies in the world are binary MLM companies. It has its advantages as well.
If you are looking for a legitimate way to make money, network marketing is one of the best options. This type of business model allows you to create your own work schedule and offer goods or services to people in your community. The binary MLM plan is something that will be useful to know about. A binary MLM plan is one of the best compensation plans in network marketing because it can provide some significant impact on your monthly income with relatively little effort.