How Does Binary MLM Plan Work?

WHAT IS BINARY MLM SOFTWARE?

Binary MLM Software is a web application that helps to manage binary networks

 such as to keep track on downline’s incomes and expenditure. It reduces the

 manual works done by the MLM companies.

Binary MLM Software is suitable for all of MLM organizations

 irrespective of their sizes.

We provide complete Custom Network Marketing Software package

 with the most profitable Binary MLM plan for MLM companies.

What is Binary Plan?

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.

How Does Binary MLM Plan Work?

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.

How Does Commission Calculation Work?

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.

Bonuses in Binary MLM Software

In the Binary MLM Plan, there are three types of bonuses that are used to increase the stability of the binary structure and to make the team active.

We offer the customization of Binary MLM Software to accommodate your requirements in the compensation plan.

Introducer or Sponsor Bonus

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.

Pairing Bonus

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.

• Here, we are calculating the commissions earned by A , B , C and D in this binary network.
• All the calculations done here are based on 10% P.V.
• Here, we would be calculating the commissions received by A.
• In this network, A recruits B and C (B = 100 PV and C = 100 PV ). Since the volume of sales on both legs are equal and they are matched,
• Commission earned by A = 10% of 100 = 10 USD.
• In case the commission earned on both legs are not matched, then we will consider the leg with lowest P.V, called the weaker leg, for calculations.
• Commission from B
• Now, B recruits D and E.
• With respect to A , D and E will fall on its left.
• D manages a P.V of 100 while E manages 200 P.V.
• So the total PV on the left = 100+200 = 300 P.V.
• On the right, C recruits F and G and F and G manages a P.V of 100 each
• So, the total PV on the right of A = 100+100 = 200.
• Going by the matching on the basis of weaker leg, right leg is the weaker leg since it could raise only 200 PV in comparison with 300 PV on the left side.
• Hence, 200 PV from the right leg of A is matched with 200 PV from the left leg and the remaining 100 PV from the left will be carry forwarded on the left side of A.

• Therefore, the commission earned by A from B and C = 10% of 200 = 20 USD.
• Therefore, the total commission earned by A = 10+20 = 30 USD.
• Commission with respect to B
• B recruits D on the left and E on the right.
• D earns 100 PV while E earns 200 P.V.
• Since the left leg is the weaker leg , 100 PV from the left and right is matched. The remaining 100 PV from the right is carry forwarded to the right leg of B.
• Commission earned by B = 10% of 100 = 10 USD
• Therefore, the total commission earned by B = 10 USD.
• C recruits F on the left leg and G on the right leg . Both F and G generate 100 PV each.
• For C, since P.V on both the legs are equal, 100 PV on left leg is matched with 100 P.V on right leg and there is no carry forward in this case.
• Commission earned by C = 10% of 100 = 10 USD.
• Therefore, the total commission earned by C = 10 USD.

Advantages of Binary Plan

1

SpillOver

Getting a new member shared between all ancestors in the power leg allows to mutually benefit and encourages everyone to attempt to recruit new members and make way to extend the binary plan.

2

Unlimited Depth

You can build your network in any depth you want and every member in the upline is guaranteed to gain profit from successful sales.

3

Fast Expansion

Each member needs to recruit only two new members that potentially leads to fast expansion.

4

Volume Driven Plan

Binary plan ensures to pay more to the distributors who bring the orders.

5

Multiple Business Centers

Binary tree is a recursive data structure so that Binary Plan allows multiple business centers for the MLM to be created.