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A Binary Plan employs a Two Legged (Left leg, Right Leg) structure in Multi Level Marketing where each new distributor or members is placed in either left or right subtree. One subtree is known as a Power Leg or Profit Leg while the second subtree is a Profit Leg or a weak leg.
Binary compensation plan requires each member to recruit and sponsor two other members to join the plan, that can potentially lead to a fast expansion of the network in a relatively less amount of time.
In the front line of the binary network marketing plan, there will be two legs, Left and Right. However, if a recruiter hires more than two members, the new member will be added to the next available member in the power leg. This allows a new member to be shared between all downline's power leg, nevertheless of who recruited them. This process is known as spillover. But in the case of profit leg, there will be no spillover because profit leg will only grow with the individually sponsored downlines.
One of the main variations of Binary Technique is that it is quantity inspired in contrast to level inspired. This also indicates there is an inspiration to help new affiliates in your organization.
The binary system network marketing plan is referred to add more sales to the downline members who benefit in increasing bonus and gaining profits. In Binary MLM Plan, commission calculations are carried out based on business volume points, not levels. A binary compensation plan calculator or MLM binary calculator will empower you with the necessary binary calculations at your fingertips to facilitate in better decision-making.
In a Binary MLM Plan formula, a commission is calculated based on whichever side a team or leg has the least amount of volume. The percentage will be calculated of that least amount of volume and every member will get paid based on that, so the profit margin depends on how your downline team members make sales.
For example, if the left leg earns 500 points and the right 1000 points. Then, the commission will be calculated as 10% of the least amount of volume that is of the left leg, so, 10% of 500. And right leg will have a carry point for the next commission.
A fully featured and an efficient Binary MLM Software with a binary compensation plan calculator or MLM binary plan calculator helps to manage all these commission calculation.
In the Binary MLM Plan, there are few types of bonuses that are used to increase the stability of the binary structure and to make the team active.
The introducer bonus or sponsor bonus or a referral bonus is the profit which the user gains by recruiting new members to the downline network. For every direct referral, a user or recruiter will get paid with the referral bonus. The sponsor bonus will be calculated based on the percentage of the predefined amount by the company.
The pairing bonus is the paid amount after completing the binary tree, i.e, gaining the bonus based on the downline members' sales. The maximum pairing bonus will be calculated by the plan you choose and the rules fixed set by the company. An MLM Binary plan may have a capping (the limit or restriction on pricing or expenditure) per day. This limitation is based on company's rules.
As said before, Binary MLM Plan is the most popular MLM plan because it has innumerable benefits, such as: