MLM Binary plan is the most popular plan among the MLM companies, network marketers, part-timers, & business members who want to earn from MLM business. This plan actually consist of binary structure i.e. there is only two members in the down line, one on left and other on right. One side sub tree or leg is referred as Power leg while the other is known as Profit leg.
The binary plan grows very faster and thus provides very profitable earnings & payouts. People can earn rewards when any member of the down line is paid for their product, even if the down line is 15 levels deep. Hence the more the member below you earn, the more you will earn also. The binary MLM plan may be of 2:1 or 1:1 or 1:2 binary compensation distributions which means that there may be variation for the profit sharing among the members.
In this model, the new members are added under you, which is referred as your Power Leg. This phenomenon is known as ‘spillover’. Your power leg helps in your quick growth.
The binary compensation plans may look very prompting and exciting having unlimited potential of growth but when business grows it becomes very hard for a company to manage & organize everything. Here our binary MLM software comes in action and make this business profitable and very easy to control and administer.
SOME OF THE ADVANTAGES AND PROPERTIES OF BINARY COMPENSATION PLANS:-
Each of members can have two front line distributors underneath them & they can promote their business by adding new members to their power leg.
MLM companies often introduce Binary Capping to establish profit sharing and compensation control thus maintaining the balance between the two legs.
Spillovers play a vital role in adding new members and managing their income.
The depth of the down line members can be unlimited keeping the width to be fixed. Large number of members can be added into the network.
Addition of every new member benefits all the members of the up-line.
This plan also depends upon the teamwork in an organization because the up line sales also benefit the down-line and vice-versa. Team unity & cooperation plays very important role in the success of this plan.