So you think you are prepared to start your new internet promotion business and you've done your homework. Then when a person talks to you about the compensation plan they mention the term MLM binary and you scratch your head - what does this mean?

You're not the only one to be confused. Most MLM compensation plans are incredibly hard to understand unless you happen to be good at math. MLM binary programs, thankfully , are a few of the simplest to realise.

So What's an MLM Binary Plan?

As everyone knows binary means two. So you just have to think about everything in pairs. One of the first things that you're going to have to do when you commence building your new business is to sign up 2 new people who also want to enjoy the financial independence of MLM promoting.

You may sign these new folks up and they become your front line. This is your personal line of backing and because this is a binary system they can then go out and recruit two more folk each. No more. No less.

So now you have inducted two others into your front line, let's call them Dick and Jane. If they follow the plan Dick and Jane can then go out and sponsor two more folks and so it goes on, and everybody gets rich and achieves their goals. Sadly Dick and Jane may not be especially effective at MLM selling and this happens a lot .

Your next move will be to sign up more people, but as you can only have two folks on your front line, the next 2 recruits have to either go under Dick or Jane or one can go under each. It's up to you to keep the legs balanced.

Now what is Binary Spillover?

Your two new recruits went into the downlines of Dick and Jane and that's simply what binary spillover means. You have helped them build their business by giving them the first people in their downline. This is one of the big advantages of the MLM binary plan and if you have an active up line, this may be going down all the time and may help you to build your side of the business.

You don't stop there, you still need to continue to sponsor and induct heaps of folks and keep balancing the two legs of the plan with the right people because most plans only pay a commission when the product volumes balance. You will enjoy lots of spillover, but you'll only be compensated when you keep adding new folk.

So although you believed you were ready to start your business this is another side that you need to look at. It's not an issue of MLM binary being the right system for you, the question is how are you going to market your business to build your downline? You have to have a plan to promote your products and also your chance to others to build your business.

One question is should you use an online lead generation system and learn attraction promoting to build your business faster and get more profitable? What's your advertising budget?

Are you also aware that in MLM you'll be looked up to as a leader by your downline, they are going to expect you to assist them with their business and to achieve their goals. Many people make a large amount of cash in the MLM business, so actually it is not the compensation plan that's critical. Your principal concern will be the right way to build your business effectively and swiftly.