If you are part of the MLM industry chances are high are you often come across MLM companies claiming to have the best compensation plans and offering the highest payout structure for their distributors.
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. But this plan survived the test of time to become one of the dominant compensation plan types in the MLM industry. How does a binary work? A binary compensation plan uses a limited-width structure that restricts distributors to two first-level recruits, creating two downline legs. A leg is a portion of a distributor’s organization starting. Free Binary MLM Calculator. Calculate your MLM Commission online with help of free online binary plan Binary MLM Calculator. Binary MLM Calculator & Binary Plan MLM Demo for FREE. Leading Binary MLM software developers & providers in India. 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.
Indeed, the right MLM compensation plan is extremely crucial to your success in the MLM business. What then is a MLM compensation plan? This is a set of rules that determine how distributors or team members earn commissions, bonuses, rewards and all manner of compensations. As MLM compensation plans go there are many in the fray, but the two most dominant that rule the scene are the Unilevel and the Binary Plan.
This post is an attempt to elucidate how the Binary MLM plan or calculator works and what are its many advantages. This plan is based on an organizational structure where new recruits or distributors are placed in a binary i.e. a two-legged structure, or left and right leg in the organization.
Not only is this a very popular but also a fairly simple marketing compensation plan which was introduced in the latter half of the 80’s and still continues to hold sway.
Understanding the Binary MLM plan
As the structure goes, each distributor is permitted to have only two members on the first level, but there is no limit to how deep a distributor can build. Since there are two legs, the left and the right leg in a binary plan, they can grow both on the inside as well as outside. The outside leg is also known as the power leg, as it has the placement advantage of new distributors not only those who your recruit but also the ones who are recruited by the members in your upline and is also called the ‘spillover’.
Again, as the width of the Binary plan is restricted to two members on the frontline, any additional members that are recruited will be a part of the ‘spillover’ in the downline’s power leg.
In the case of the profit leg though, there is no spillover and only consists of personally sponsored distributors. This should be factored in when building an MLM business where you intend to use the Binary MLM compensation plan for commissions.
Binary MLM Calculator – Calculate your MLM Commission online
So, how are the commissions calculated
Commission calculations in a binary plan are typically based on business volumes and not levels. It is distributed on the basis of matching pairs from the Left & Right leg of a distributor, in a defined ration such as 1:2, 2:1, 1:1 etc.
The compensation is calculated at almost 10% of the total business volume of the weaker leg, which makes it important to build each leg equally so that you gain a rich compensation.
The commission is also based on adding more distributors in the network as well as different awards and rewards on achieving the specific target to grow within the network. Royalty commissions are also very popular in a Binary plan and are based on company turnover and are usually credited to those distributors who play a prominent role in expanding the network.
This plans also owes its immense popularity to the different types of incomes that are a part of this plan such as the Binary/ Pair Matching income, Spill income, Direct Sponsoring Income, Spill Network Income, Referral Income, Single-Leg/ Level Income, and various other awards and rewards along with offers and schemes.
What are the advantages?
The Binary plan is well known for a host of advantages and is extremely popular not just in India, but other Asian countries as well –
Simplicity at its core – The Binary plan is extremely easy to understand, as all you need to follow is to get 2 distributors in the network.
Income opportunities aplenty – This plan affords huge income opportunities, owing to its infinite depth. Though there is a limitation on the width, there is no restriction on the depth of this plan.
Builds team spirit – As this plan is based on the need to balance the business volume of the two legs, it encourages distributors to help members of the weaker leg to achieve a better balance and in turn fostering team spirit and enabling company growth.
Conclusion
The Binary plan is not without its pitfalls, but its advantages far outweigh any drawbacks. Straightforward as it is, all it requires is complete alertness. Understanding the rules can help you achieve your goals and maximize your payouts with the Binary MLM compensation plan.
As an MLM company, you may feel short of understanding the full implications and workings of a Binary plan, here it would be highly beneficial that you seek out an MLM software that offers the Binary MLM compensation plan, along with offering customizations for any MLM business based on their requirements and needs.
YAKS Group is dedicated to contributing to the direct selling (MLM) industry as much as possible. We know for a new company business plan design is one of the biggest challenge. And To solve the business plan design confusion we are introducing MLM binary calculator.
YAKS Group provide most easy way to design you Binary MLM plan from our efficient MLM binary calculator.
You just need to add below details to calculate the profit per member in the Binary MLM plan through MLM binary calculator.
Mlm Binary Plan Calculator Estimate
Package Amount
Product cost
Matching ratio
Binary income (Flat/Percentage)
Sponsor income (Flat/Percentage)
Capping Amount
GST on Package
Admin Charge
TDS
Levels
After, Adding the above details you can see all the details.
Binary Mlm Calculator
Click here to go to MLM Binary Calculator
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If you want to know more about Details of Binary MLM plan then you can visit our website www.mlmservices.in and visit the Binary plan details page.
Moreover, You can ask us for your MLM software development to us and we can help you efficiently as you want.
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If you are confused about the package design of your MLM company then we can offer you products or services which can be set in a 10% margin of the package amount.
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