An important key to any Binary is proper cap rules. These are generally thought of as “ways to hurt the distributor”, but a properly designed plan turn cap rules into marketing techniques.

Part VIII: Using Your Cap Rules Effectively

Properly designed cap rules should do two things. First they should help your company reduce the level which the payout is capped for the normal distributor. Second, they should show that the amount of money to be made in your company is really good. If your cap says something like, "maximum earning potential of $1,000 per week" you can rest assured that many of the top leaders will have stopped reading and will not be joining. However, if your cap says something like, "maximum earning potential of $100,000 per week" you have shown a strength to the distributor that they will respond to.

Naturally, capping everyone at $100,000 per week will actually have almost no impact on making your company successful, so the best method is to have a tiered cap approach. The lowest earning level could have a $1,000 cap and the highest should have at least six figures if not "unlimited".

Never put any cap numbers that are less than $1,000 as this is a strong number that is a goal of many distributors. Below that reduces the strength considerably.

For real compensation consulting we continue with fine tuned analysis specific to the clients compensation plan.