The binary MLM plan is defined as a compensation plan that consists of two legs (left leg and right leg) or subtrees under every distributor. Upon adding subtrees, a binary tree gets formed. New members joining after them are spilled over to the downlines or next business level.
This process continues to unlimited levels or depths. The working of binary marketing plan is easy to understand which helps distributors attract more people to the network. Thus the recruitment or sales increase which also improves growth and business opportunities.
Most of the popular companies choose this basic plan with precise planning and proper strategy.
Well, MLM companies that run with the binary compensation plan needs proper tracking. An intelligent Multi-level marketing software helps companies manage, control, and organize their binary MLM system business easily.
HOW DOES MLM BINARY PLAN WORKS?
Binary plan is one of the most famous business plans used by maximum MLM companies throughout the world. As per the name is concerned, Binary based is based on two numbers (0 and 1). One person can introduce 2 new members to the company, and later on these 2 people will bring 2 more people and so on till infinity.
Look At The Picture, Here U is a person who introduces A and B to the company. Now the person A will introduce C and E as well B will introduce D and F. This Process & Hierarchy will continue until infinity. it is mainly 2-By-Infinity Plan.
Every Binary plan structure will have two branches, the Left & Right. Whichever branch makes more money, that is the profit leg. Profit leg does not support spillover. All the new people will be automatically placed in the parents distributor’s downline power leg if they are personally hired or sponsored by their parent distributor as new person signs up.
Whether it is right or left, the leg with fewer members will be the profit leg. The profit leg will not grow beyond the power leg. As per the rules binary allows 2 maximum children any new person would be placed in parents downline powerleg. As any member signs up they will automatically be placed in the distributor’s power leg.
When the power leg and profit leg reach the identical chasm, the maximum profit will be accessible. So the profit is heightened when there are new joiners in the strategy. Every member should evaluate the profit leg, which implies that there is no determining profit leg and power leg by its position. Whenever there is a new joiner in the profit leg, the predecessors of the joiner will be rewarded the benefits.
Let the P.V is 10%. Here A introduces B And C, hence both legs are equal and they are matched.
Commission earned By A is 10% Of 100 Rupee(INR) = 10 Rupee.
Now B Introduces D and E D Comes with a P.V of 100 Rupee and E comes up with P.V of 200. so the total P.V on the left side is (D + E) (100 + 200)=300 Rupee.
Now C Introduces F and G F Comes with a P.V of 100 Rupee and E comes up with P.V of 100. so the total P.V on the right side is (F + G) (100 + 100)=200 Rupee.
In this case B is greater than C. So right leg is weak leg and left leg is stronger.
In this case 200 Rupee from the left side and 200 Rupee from the right side is matched and an extra 100 rupee on the left side is carried forward.
Hence Total Commission Earned By A From B And C is 30%.
10% for introducing B And C and 20% Comes from B and C for introducing D, E, F, G Commission earned By B is 10% Of 100 Rupee(INR) = 10 Rupee for introducing D, E.
Commission earned By C is 10% Of 100 Rupee(INR) = 10 Rupee for introducing F, G.
Binary compensation plans really are one of a kind. The structure, commissions, and building strategies are totally unique and give it a special advantage over the other compensation models in the industry. There’s a lot of room for you and your strategy team to discover your own insights for leveraging the strengths of a binary in your own plan—a structure that’s simple to explain and tailor to your products and goals has endless possibilities.
Just as in any MLM, binaries need variety and clear compensation plan rules that are easy for any distributor to reference as they start and grow their business. Making communication a priority and taking advantage of supplementary commissions and promotions will make a big difference for any binary in the industry today.