February 3

Binary Compensation Plan, Is It Really the Best Way to Go? IRP Compensation Plan?


In today’s wacky world of network marketing, compensation plans have always been a big selling point to potential recruits, and in recent years the big winner in the debate has be the Binary Compensation Plan. You have seen some of the biggest MLM companies going with this plan because it is stable and generates a lot of income for the company and it rewards people who really go out and work their business.

Without going into it to deep, essentially it goes like this. After you join your network marketing company, your goal is to build 2 legs, a right leg and a left leg. If you are on your sponsors left leg, for example, people would fill in on your left leg as your sponsor enrolls more people into your company. This is great because, for the most part, you only have to work on sponsoring people on your right leg.

The best thing about the plan was, if you get on a real players outside leg he can build a large organization for you on that outside leg and you can focus on building your other leg, very cool.

BUT, it is not all roses and lollipops!

I most cases, people are stuck on the inside of an inside leg and you will have to build both legs, this is hard work because you basically have no help, this is a huge drawback. People tend get frustrated and then drop out, this is one of the reasons the attrition rate is so high in our industry. You can’t really blame this on the Binary Compensation Plan; people get impatient with their progress and just drop out.

But now, there seems to be a new player on the market that could give the Binary Compensation Plan a run for its money, literally. It is called the “IRP” Incentivized Referral Plan. If this works it will revolutionize the network marketing industry and could make it more attractive to the masses.

A totally new look for network marketing compensation plans.

First of all everyone who joins into the company and has a higher number than you, is part of your commission structure. It’s a small amount, fractions of pennies but if you get into a company that is growing and you have a million people under you in the company, this can be very lucrative.

When you get it, you are almost obligated to stay with the company, because the checks are very small at first, the longer you stay in the bigger you checks are from people you have nothing to do with. It is akin to the penny double theory, start with 1 penny and multiply it by 2 for 30 days and that penny is worth 5.3 million dollars, it amazing, if you don’t believe me do the math.

Now the only company that I am aware of who is based in the United States is One24. According to MLMRating.com they are in the top 10 for 6 month growth as of March 2011.

It makes sense, the most popular reason people get into network marketing is to make good money, if you can make money on people you never signed up, it is like having everyone in the company working for you to build a leg and you never having to build another leg.

I will be interesting to see if One24 makes it, if it does it will probably be the end of the Binary Compensation Plans and the dawning of new MLMs embracing the IRP and other Linear Compensation Plan models.

Like all other Network Marketing Companies the people who get in early make all the money and the early pioneers getting into One24 now, have a good chance of doing well. If the IRP is a flop then this will be just theory that only looks good on paper, only time will tell.

If you want to successfully market on the Internet, that is your mission,  you have to learn how to build trust, make connections and prove to others that you are going to be there when to going gets tough. It’s up to you whether you want to engage in internet marketing the correct way or the same way that ends 97%  in network marketing to the bottom of the sea.

The Choice Is Yours!

Alex Martinez

Alex Martinez

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