The Binary compensation plan model is very popular in MLM. The binary compensation plan is one of the most dominant MLM compensation plans in the industry. The binary plan is very simple to handle and highly profitable. The binary compensation plan is one of the most dominant MLM compensation plans in the industry. It is attractive to all members because this plan provides value to the owner and users equally.
How Binary Plan Works?
Binary MLM is based on a matrix of two. The company offering this plan will only permit you to sign up or recruit 2 people into your first level down line.
Based upon MLM leads new distributors are arranged on the left and right legs, thus the tree grows to unlimited levels. The key to success with a binary plan is selecting your first 2 people very carefully; your profit margin will depend on those 2 people being active. Remember to also keep your downline balanced, you can't afford to have an uneven leg.
How commissions are calculated >>
In the binary compensation plan commissions are ranked by volume . . . not levels. For example in the matrix compensation plan when a representative builds their team to the 5th , 6th or 7th 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.
** Commissions in Binary compensation plans **
#1. Sponsor Bonus
The bonus paid by joining or sponsoring two members to the network.
#2. Binary Bonus
After complete balancing of the binary tree, one gets a bonus as per the work of the downline members.
#3. Matching Bonus
The bonus received for adding new members to the network.