Thursday, June 3, 2010

Why Enagic's Comp Plan Won't Hold Water

"A binary?" my friend moaned. "Please tell me you are joking," she said. "I've been in three binary comp plans, and never made any real money."

Silently, I agreed with her. Been there, done that. Got the empty bank account to prove it.

"Listen, give me a minute and I'll show you why this plan is different," I replied.

I have to admit, I wasn't too excited when I first heard that this fantastic new water ionizer was under a binary compensation structure. "Why couldn't they have been as innovative and pioneering about that," I grumbled to my partners when they told me what we were going to be doing.

Turns out, it's not your average binary bear. It's a retail-unilevel-binary hybrid. If you make the sale, you get 20% up front, and 25% of the commission that the person you sponsored (your direct) forever as a bonus. That's the unilevel part. If you sell retail, you can make $700-999, plus your PV points. If you build a nice binary structure, you get 5% of your PV, paid weekly, up to the amount of your lesser leg. AND your excess volume in the power leg doesn't disappear. Your personal purchase volume over $200/month rolls into your weaker leg. Finally, the company has a host of other products to keep the 100 monthly PV going.

I know that sounds like mumbo jumbo if you don't know binarys, but if you do, you know it sounds like gold.

So why all the whining from Enagic leadership about binarys? Simple. There are several new binary companies that are raiding the ranks of Enagic distributors so they have to make binary compensation look like the devil.

In fact, they are right if you look at the original binarys of the 80s and 90s. They were designed to leave money on the table and benefit the company, not the distributor. And most failed because distributors don't stick around if the money doesn't flow. The newer hybrids are much better. And the biggest difference is depth.

Do your own research ... just google binary MLM and read the articles. The one big plus of a good binary is that it pays based on volume, not levels. They cap your weekly income based on various considerations - like how many people you have developed into successful distributors - but it is not capped based on depth. In Enagic's plan or other types of MLM comp plans, if you have a highly motivated "runner" 100 levels away from you, you'll never see any income from that person. In a binary, you can if people between you and the runner aren't doing a lot. You have only two legs to worry about, so there's no agonizing over where to place someone. And in this unilevel-binary hybrid plan, you are definitely rewarded for being the direct sponsor no matter how far down one of your legs someone gets placed in the binary.

Email me if you want to know more details. It's too much to explain in a blog. Just know that it works, it's favorable to the distributor, and you can make as much if not more money in it than with Enagic, especially since you have true residual income potential.

(Yes, I know you make more on one sale as a 6A to someone ... but the cost of the SD501 is $3980 because of the high payout to the distributor structure.)

When I finished the white board exercise drawing lines and circles and dollar signs and numbers, my friend was quiet. She had this far away look in her eyes. "Are you OK?" I asked. "Any questions?"

"No," she said, dreamily. "Just thinking about what I'm going to do with all that time and money when I quit my job!'

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