Unlike the matrix compensation plan, the mlm binary compensation plan is a two-leg structure. There is a right side and a left side where members are placed. In addition, one leg is known as a strong leg, pay leg or profit leg while the other one is known as the weak leg.
Instead of having three or more members on your frontline you only have two on your front line (even though some MLM companies may reward you for sponsoring more than two).
MLM Binary Compensation Plan - Two Legs
Binary MLM Calculator. Use our Binary MLM Calculator to work out your commissions, either in percentage or flat. Designed meticulously, this can give you a brief idea about the compensation you can get from a particular Binary MLM Plan. Binary MLM Calculator The binary MLM planconsists of two legs, one on the left and the other on the right. Pretty simple to visualize a tree structure with two members, isn't it? But what happens when this tree (genealogy) expands to unlimited depth, i.e. Say more than 200 members join under one after the other? A matrix plan, also known as a forced matrix MLM plan, sets specific limitations on the depth and width of distributors' networks. For example, the firm might have a 5-by-6 matrix, meaning that a distributor must bring in five people on the initial tier and will make money helping that tier do the same for as many as six layers of depth.
If you DO sponsor more than two the additional members will be added to the next available spot in one of the legs.
MLM Binary Compensation Plan - Spillover
Often the company will allow you to choose which leg your new sponsor goes on. Usually, an upline will encourage this sponsor on which leg to put their new sponsor on.
For example, if your upline put you on their left leg they will encourage you to put your sponsor also on your left leg. The reason for this is that this allows the current representatives to benefit from the new members being added to the power leg.
The same thing goes for the right side. If you put a sponsor on your right side and you know that you're going to try to build your right side you may tell your sponsor to put their new members on the right side also so everyone can benefit from that side
How The MLM Binary Compensation Plan Works
In the binary compensation plan commissions are measured by volume . . . not levels. For example in the matrix compensation plan when a representative builds their team to the fifth, sixth or seventh level they get paid a percentage of customers at that level.
In the binary plan when a representative reaches a certain number of product sales they're paid a percentage of the volume.
A company may have it set up where if you have 20 customers on your right side and 20 customers on your left side they may pay you the percentage of the volume.
In the example above
So on your right leg if you have 10 reps that have two customers each (20 customers total) that bought a product for $50 that would equal $1000
And on your left leg if you have 10 reps that's have two customers each (20 customers total) that but the same product $50 dollars that would equal $1000
- This equals $2000 in your volume
If the company decided to give you get 9% residual income of the volume that would equal $180
In another example is on your right leg if you have 10 reps that have two customers each (20 customers total) that bought a product for $70 that would equal
And on your left leg if you have 10 reps that's have two customers each (20 customers total) that but the same product $60 dollars that would equal $1300 in volume
If the company decided to give you get 15% residual income of the volume that would equal $195.
Advantages and Disadvantages
The Binary compensation plan makes it convenient for the company to give out bonuses to the representatives who qualify. Also there are a few advantages to working with a binary sructured plan.
Advantages
The following adantages are:
- Spillover - This isn't necessarily a bonus, however, a bonus can be obtained by getting spillover. An example of this is when you're upline sponsors more than two people and the extra person falls to the next available spot which could be under you, therefore, you would get the credit for it and receive any qualifying bonuses for obtaining a new person in your lineage
- Unlimited depth - Unlike the matrix compensation plan, the Binary plan pays you through unlimited depth due to the fact that you get paid for the volume. This ensures that every member in your upline (and possibly downline) benefits from this.
MLM Binary Compensation Plan - Unlimited Depth
- Faster Growth - Starting with two in the binary system you can build deeper faster since representatives get paid on depth. You don't have to acquire five or three in order to start building deeper into your lineage.
Disadvantages
- Seldom Pass Uplines - It is harder for newer reps to get paid as much as the uplines do. Due to the fact that representatives are paid on depth, the more than the newer representative produces, the more chance the upline has to get paid. (Unless the uplines other leg isn't producing as much)
- Equal Legs - In most cases in order for representatives to be paid bonuses or residual income their left leg has to be equal to the right leg.
For example, if you will get 3 levels of residual income:
- 9% when you get 20 in each leg
- 15% at 30 in each leg
- 25% with 50 in each leg.
If you have 150 in the left leg (also with the help of spillover) and 23 in the right leg you will be paid residual income on 20 in each leg. In other words, you'll get no credit for having extra 130 in that leg.
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MLM Binary Compensation Plan - Limited on the shorter leg
. . . Company Has Final Say
These examples of compensation and residual income are not written in stone. Remember that this is the format for a binary structure. Multilevel marketing companies can make the rules on how much they pay and what the qualifications for payments are.
You will see MLM companies change the compensation plans and payouts all the time. It is your responsibility to keep updated with the company you choose.
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MLM Binary plan is a plan structure which is used in Multi Level Marketing, that is very simple and popular among MLM Plans.
In this plan, each joiner/member is positioned in the binary tree structure.
The right sub-tree and left sub-tree concept is the members downline connections. Each member will have both trees.
This plan is being very popular because of its simplicity.
Started in late 1980, binary plan has become one of the most popular plan in the MLM industry by 21st century.
A binary tree structure's graphical representation.
Plan structure
Each user in binary plan will have two down-line. known in various names.
- Right leg/Left leg
- Outside leg/Inside leg
- Power leg/Profit leg
This down-line can be called as any of the three above.
Binary plan's special feature is that a member only have to recruit two members, although not limited to. And encourage them to recruit members under their legs.
Mlm Binary Plan Calculator Example
This can result in a rapid growth in network with large number of organization members in a short period of time. Saying that it is not that a member can only recruit two members but can recruit/sponsor more than two. And if they do the recruited member will be added to the available node in power leg , this is called as spill over.Which means the profit from this persons will be shared with all ancestors in the power leg.
Spillover will help the organization members to act as team with shared benefits from adding more members.
Unlike the other MLM plan structures binary structure can hold multiple business centers. That said , any member can be a business center agent and recruit agents.
Binary plan compensation
Profit leg
Every Binary plan structure will have two branches , The Left & Right.
Whichever of this branch makes more money, that is the profit leg.
Power leg
Whether it right or left, the leg with less members will be the profit leg. Profit leg will not grow beyond power leg.
Mlm Binary Plan Calculator Spreadsheet
Profits
When the power leg and profit leg reaches the same depth, maximum profit will be available. So the profit is increased when there are new joiners in the system. Each member should concentrate on profit leg, that means, there is no determining profit leg and power leg by its position. Whenever there is a new joiner in the profit leg, ancestors of the joiner will be awarded with the benefits.
Instead of having three or more members on your frontline you only have two on your front line (even though some MLM companies may reward you for sponsoring more than two).
MLM Binary Compensation Plan - Two Legs
Binary MLM Calculator. Use our Binary MLM Calculator to work out your commissions, either in percentage or flat. Designed meticulously, this can give you a brief idea about the compensation you can get from a particular Binary MLM Plan. Binary MLM Calculator The binary MLM planconsists of two legs, one on the left and the other on the right. Pretty simple to visualize a tree structure with two members, isn't it? But what happens when this tree (genealogy) expands to unlimited depth, i.e. Say more than 200 members join under one after the other? A matrix plan, also known as a forced matrix MLM plan, sets specific limitations on the depth and width of distributors' networks. For example, the firm might have a 5-by-6 matrix, meaning that a distributor must bring in five people on the initial tier and will make money helping that tier do the same for as many as six layers of depth.
If you DO sponsor more than two the additional members will be added to the next available spot in one of the legs.
MLM Binary Compensation Plan - Spillover
Often the company will allow you to choose which leg your new sponsor goes on. Usually, an upline will encourage this sponsor on which leg to put their new sponsor on.
For example, if your upline put you on their left leg they will encourage you to put your sponsor also on your left leg. The reason for this is that this allows the current representatives to benefit from the new members being added to the power leg.
The same thing goes for the right side. If you put a sponsor on your right side and you know that you're going to try to build your right side you may tell your sponsor to put their new members on the right side also so everyone can benefit from that side
How The MLM Binary Compensation Plan Works
In the binary compensation plan commissions are measured by volume . . . not levels. For example in the matrix compensation plan when a representative builds their team to the fifth, sixth or seventh level they get paid a percentage of customers at that level.
In the binary plan when a representative reaches a certain number of product sales they're paid a percentage of the volume.
A company may have it set up where if you have 20 customers on your right side and 20 customers on your left side they may pay you the percentage of the volume.
In the example above
So on your right leg if you have 10 reps that have two customers each (20 customers total) that bought a product for $50 that would equal $1000
And on your left leg if you have 10 reps that's have two customers each (20 customers total) that but the same product $50 dollars that would equal $1000
- This equals $2000 in your volume
If the company decided to give you get 9% residual income of the volume that would equal $180
In another example is on your right leg if you have 10 reps that have two customers each (20 customers total) that bought a product for $70 that would equal
And on your left leg if you have 10 reps that's have two customers each (20 customers total) that but the same product $60 dollars that would equal $1300 in volume
If the company decided to give you get 15% residual income of the volume that would equal $195.
Advantages and Disadvantages
The Binary compensation plan makes it convenient for the company to give out bonuses to the representatives who qualify. Also there are a few advantages to working with a binary sructured plan.
Advantages
The following adantages are:
- Spillover - This isn't necessarily a bonus, however, a bonus can be obtained by getting spillover. An example of this is when you're upline sponsors more than two people and the extra person falls to the next available spot which could be under you, therefore, you would get the credit for it and receive any qualifying bonuses for obtaining a new person in your lineage
- Unlimited depth - Unlike the matrix compensation plan, the Binary plan pays you through unlimited depth due to the fact that you get paid for the volume. This ensures that every member in your upline (and possibly downline) benefits from this.
MLM Binary Compensation Plan - Unlimited Depth
- Faster Growth - Starting with two in the binary system you can build deeper faster since representatives get paid on depth. You don't have to acquire five or three in order to start building deeper into your lineage.
Disadvantages
- Seldom Pass Uplines - It is harder for newer reps to get paid as much as the uplines do. Due to the fact that representatives are paid on depth, the more than the newer representative produces, the more chance the upline has to get paid. (Unless the uplines other leg isn't producing as much)
- Equal Legs - In most cases in order for representatives to be paid bonuses or residual income their left leg has to be equal to the right leg.
For example, if you will get 3 levels of residual income:
- 9% when you get 20 in each leg
- 15% at 30 in each leg
- 25% with 50 in each leg.
If you have 150 in the left leg (also with the help of spillover) and 23 in the right leg you will be paid residual income on 20 in each leg. In other words, you'll get no credit for having extra 130 in that leg.
Machines With Matlab Gonen Solution Manual Free Ebooks in PDF format ELECTRICAL MACHINES DESIGN OF ROTATING ELECTRICAL MACHINES X RAY PHYSICS X RAY' 17 / 43 'ELECTRICAL MACHINES TURAN GONEN SOLUTION MANUAL APRIL 30TH, 2018 - REGISTER FREE TO€. Electrical machines turan gonen solution manual download. Solution Manual Keywords: electrical, machines, turan, gonen, solution, manual Created Date: 7/11/2020 3:31:56 AM the electrical machines turan gonen solution manual, it is very easy then, previously currently we extend the join to buy and make bargains to. Electrical Machines Turan Gonen Solution Manual Getting the books electrical machines turan gonen solution manual now is not type of inspiring means. You could not solitary going taking into account ebook heap or library or borrowing from your contacts to approach them. This is an entirely easy means to specifically acquire lead by on-line. Electrical Power Distribution Turan Gonen Solution Manual File Electrical Power Distribution Turan Gonen Solution Manual Pdf'Electrical Machines Turan Gonen Solution Manual April 26th, 2018 - If searching for the book Electrical machines turan gonen solution manual in pdf format in that case you come on to correct site We furnish the utter.
MLM Binary Compensation Plan - Limited on the shorter leg
. . . Company Has Final Say
These examples of compensation and residual income are not written in stone. Remember that this is the format for a binary structure. Multilevel marketing companies can make the rules on how much they pay and what the qualifications for payments are.
You will see MLM companies change the compensation plans and payouts all the time. It is your responsibility to keep updated with the company you choose.
Recent Articles
Network Marketing Lead List: To Buy or Not to Buy
Jun 20, 19 11:34 AM
Buying a Network Marketing Lead List can be a way to increase productivity in an MLM business. However, there are pros and cons to purchasing them.
Pre Qualified MLM Leads: How to Generate Them
Feb 06, 19 08:27 AM
Pre Qualified MLM Leads are in high demand by many network marketers in the industry. More than 90% of network marketers are on the hunt for leads. It would be even better if these leads were pre-qual…
Pre Qualified MLM Leads vs Unqualified MLM Leads
Jan 29, 19 11:22 AM
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- ›
MLM Binary plan is a plan structure which is used in Multi Level Marketing, that is very simple and popular among MLM Plans.
In this plan, each joiner/member is positioned in the binary tree structure.
The right sub-tree and left sub-tree concept is the members downline connections. Each member will have both trees.
This plan is being very popular because of its simplicity.
Started in late 1980, binary plan has become one of the most popular plan in the MLM industry by 21st century.
A binary tree structure's graphical representation.
Plan structure
Each user in binary plan will have two down-line. known in various names.
- Right leg/Left leg
- Outside leg/Inside leg
- Power leg/Profit leg
This down-line can be called as any of the three above.
Binary plan's special feature is that a member only have to recruit two members, although not limited to. And encourage them to recruit members under their legs.
Mlm Binary Plan Calculator Example
This can result in a rapid growth in network with large number of organization members in a short period of time. Saying that it is not that a member can only recruit two members but can recruit/sponsor more than two. And if they do the recruited member will be added to the available node in power leg , this is called as spill over.Which means the profit from this persons will be shared with all ancestors in the power leg.
Spillover will help the organization members to act as team with shared benefits from adding more members.
Unlike the other MLM plan structures binary structure can hold multiple business centers. That said , any member can be a business center agent and recruit agents.
Binary plan compensation
Profit leg
Every Binary plan structure will have two branches , The Left & Right.
Whichever of this branch makes more money, that is the profit leg.
Power leg
Whether it right or left, the leg with less members will be the profit leg. Profit leg will not grow beyond power leg.
Mlm Binary Plan Calculator Spreadsheet
Profits
When the power leg and profit leg reaches the same depth, maximum profit will be available. So the profit is increased when there are new joiners in the system. Each member should concentrate on profit leg, that means, there is no determining profit leg and power leg by its position. Whenever there is a new joiner in the profit leg, ancestors of the joiner will be awarded with the benefits.
Binary commission
As the name says it plays with 2 node. But there is no limit of nodes in the whole network In binary compensation, each node represents members in the network. The main benefit of binary plan is that, you starts earning when you refer two new nodes ( members ) and the earnings will be continued whenever a new member join your downline.
This commission depends upon the PV (Personal volume) / BV ( Business volume). The PV /BV can be achieved by each member by referring a new member in to the network. Each referring will give 100 PV to the sponsor. This PV will be added to one of his leg based on the new member joined. Whenever any member in the network has a minimum of 100 PV in both of his leg, the member will be rewarded by the binary commission. When a new member join the network , PV will distribute not only to the sponsor, it will distribute all up-line users in the network, where the new member placed in the network. So in this way the members in the up-line will also be able to earn commission by the new members joining under them.
In Cloud MLM Software , admin can configure all the values from software administration area.
And also admin can limit the binary commission per users in every month or week or year from the administration area by setting a binary limit and binary limit duration.
Sponsor Commissions
The sponsor commission is also referred as referral commission / leader bonus.
By introducing a new member to this network, each user will be able to achieve the sponsor commission.
In cloud MLM Software The amount for sponsor commission can be defined from the administration area.
Ranks
The term 'Rank' refers to the relative position of a member in the network. By default, each member holds basic rank.
Binary Mlm
The rank upgradation is depending upon the number of referrals the user personally did, and the total number of members which has specific rank under the user in the binary tree.
Cloud MLM Software is capable of managing all those settings i.e:the rank can be managed from the admin side rank settings. Also it can be completely reconstructible as per your own custom plan.
