A Binary Plan is a Two Legged(Left leg, Right Leg) structure used in Multi Level Marketing where the each new distributors or members are placed in either left or right subtree. Where one subtree is known as a Power Leg or Profit Leg while the second subtree is a Profit Leg or a weak leg.
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 all manual works those are done by the MLM companies. Binary MLM Software is efficient for all kind of MLM organizations whether they are small or big.
Binary plan makes each member for recruiting and sponsoring two other members to join the plan, that can potentially lead to a fast expansion of the plan in a very less amount of time. In the front line of the binary 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 compensation 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.
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 helps to manage all these commission calculation.
In the Binary MLM Plan, there are three types of compensation that are used to increase the stability of the binary structure and to make the team active.
We offer the customization in Binary MLM Software to make your own rules in the compensation plan.
1. Introducer or Sponsor Bonus
2. Pairing Bonus
3. Matching 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.
The pairing bonus is the paid amount after completing the binary tree, 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 by the company. A Binary plan may have a capping (the limit or restriction on pricing or expenditure) per day. This limitation based on company's rules.
Matching Bonus is the bonus earned for recruiting new members in the downline network. This allows earning an extra percentage of the pairing bonus from their corresponding downline members. The matching bonus can be earned up to n generations depending on the compensation MLM plan chosen by the MLM Company.