The key to success in a binary MLM Plan is to strike a balance between the two legs. Finding it a bit complicated? A binary MLM Calculator can help you there. It is designed to calculate the binary MLM compensation of any network with a few inputs from the user. 1:1,2:1 and 1:2 pair calculations can also be calculated with our MLM calculator. Unlike an Excel sheet where you can execute only simple mathematical calculations, our MLM calculator is a comprehensive mobile app that takes into account various complex binary parameters that.
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.
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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.
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.
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.
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.
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.
Binary Mlm Generation Plan Calculator
Conclusion
Mlm Calculator Excel
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.
Mlm Binary System
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.