Is Binary Compensation a Pyramid?
Are binary compensation plans in MLM the same as pyramid schemes? In a previous video, I said “If you’re paid infinitely deep, it’s a pyramid.”
But I need to clarify what that means… In this video, I’ll draw it out for you so you know the difference… First, Network Marketing companies that use binary plans usually cap them out at a certain amount of money per week or per month.
The important thing to remember is that if it PAYS infinitely deep on both sides, it’s a pyramid. If it caps out at a certain amount of money, then by definition it is not. I hope that helps.
