The Binary Compensation Plan is one of the best and most profitable schemes in the Multi level marketing business as it is easy to understand and execute. It basically operates on the principle of two legs or branches and each member has two branches called the left and right branches, and each branch has a new member. This plan forces users to add a couple of members to their downlines and provides them with huge revenue and incentive structures, making it very popular among MLM enterprises.
How does the Binary compensation tree structure look like?
In Binary tree structure, there are two branches or two sides. One side is called Power Leg, and the other is called Profit Leg. As new members will be added in the power leg, and the tree grows as the power leg grows. And when a member is added to the profit site, the binary tree structure is completed and compensation is distributed among the members. This is the reason why this leg is known as the profit leg. Obviously, this creates a tree that goes to unlimited levels and earns participants at each level when they are below their level, thereby increasing returns.
How will compensation be calculated?
In the MLM binary plan, sub tree branches are treated as a profit branch and a weak branch, according to their percentage of sales/points of sale. The calculation of commission depends solely on weaker section, which as a result contain fewer points of sale. If perhaps part of the profit has many more points, but a weak side, which is an inactive position or has minimal selling points, means that you cannot afford more profit. Of course, in the MLM scenario, Compensation plays a vital role, but there is a different payment mechanism available in Binary compensation scheme.
As a result, identifying potential downlines is another key part of earning a high return on this compensation plan. When this actually happens, you can definitely make more money and, in addition, increase the bonus as follows
Referral Bonus
This is also known as Sponsor or Introducer Bonus, which a Sponsor earns after introducing a member to the Binary Network.
Binary Commission
As stated earlier, this is a pair of commissions that will be earned by the sponsor after completing the binary tree on the downline basis, and it may be a capping per day based on company rules.
Matching Bonus
A special commission will be received by the sponsor for the successful sale of their respective downlines.
In a nutshell, the MLM Binary Plan offers higher payment maximum payments than any other MLM plan. The binary program has infinite length, and the top participants continue to earn infinite time. Participants will earn until the tree grows, and even after that. This is why most people are interested in this scheme!!!