INTRODUCTION TO MLM BINARY COMPENSATION
ADVANTAGES AND DISADVANTAGES
BINARY PLAN STRUCTURE
Binary Plan is type of Compensation Plan in Multi-Level Marketing among various other plans.
As the name implies, in this plan, each distributor can have only two frontline distributors.
D E F G
If the distributor above you i.e. in your upline has sponsored more than two, then they will be placed at
levels below you i.e. in your downline. This is called Spill.
Here D is the Spill of A
D E F G
As each distributor can sponsor only two distributors, its structure has two legs.
They are called “Right or left legs” and “Strong and Weak legs”.
D E F G
The Right leg or the Strong leg, is the leg in which you are joined and the spills of the distributors above
Hence Right leg will be longer and hence stronger.
The Left leg or the weak leg is the leg where you start adding directs under you.
This is the leg which you will build, hence it is called weak leg or the short leg as it does not spills of your
D E F G
Right Leg Left Leg
Because of the spills, which will be considered under you, this plan is considered very good.
You are being paid in addition, from the spills of your upline placed in your strong leg.
ADVANTAGES OF BINARY PLAN
In this plan, you can get to earn from the spill of your up-line, as they are adjusted in your Right leg. This
is because of the binary plan principle of having only two frontline distributors.
Since your Right leg is built by the spills, you need to build only one leg, i.e. left leg.
But your income will almost be double than the number of directs you place under you.
This plan is of unlimited depth. While no plans pay up to unlimited depth, binary plan has the potential.
This plan has the capacity to grow faster.
Because of its simplicity in understanding the plan, it is favoured by start-ups.
DISADVANTAGES OF BINARY PLAN
You can earn from the spill only if your sponsor is strong.
If he is not recruiting that many directs then you will not benefit. You will have to work harder to build
your weak leg.
Some compensation plans have their terms and conditions like they will pay you only if there is a certain
balance in both of your legs. For an e.g. 25% on weak leg and 75% on strong leg or 50% on both the
legs. Hence it is of utmost importance to understand the plan properly.
TYPES OF BINARY PLANS
First is Simple Binary
Pair formation: This is the first step towards income calculation for simple binary plan. While forming pair we have
to consider total left and right count available in payout period.
Capping: Pre-defined Amount by administrator
Payout Analysis: This is a report related to detailed information of incoming and out-going binary fund per payout.
Simulation: Pre-defined Amount by administrator
Other types are Hyper Binary, Australian Binary, Level Binary and Daily Binary
For more information on Binary as well as other
Plans, contact our expert consultants not only for
software consulting but as well as for insights on
various types of compensation plans.
Sankalp Computer & Systems Pvt Ltd
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