How Binary MLM Plan Works
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 sub tree. Where one sub tree is known as a Power Leg or Profit Leg while the second sub tree is a Profit Leg or a weak leg.
Binary Plan MLM Software is a web application that helps to manage binary networks such as to keep track on down line’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 down line’s power leg, nevertheless of who recruited them, this process is known as spillover or Binary with Spill Income. But in the case of profit leg, there will be no spillover because profit leg will only grow with the individually sponsored down lines. 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 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.
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