A binary Multi-level Marketing Plan employs a two-legged (left leg, right leg) structure in multi-level marketing, where each new distributor or member is placed on the left or right subtree. One subtree is known as the power leg or profit leg while the other subtree is known as the profit leg or weak leg.
A binary multi-level marketing plan involves two legs – the left leg (Power Leg) and the right leg (Weak Leg). Depending on the position of the new team member, the new member can be on either leg. Every team member would be responsible for hiring more team members to their downline and placing them on each of the legs. If a member recruits more than two members, they will put the person on the power leg. Everyone on that upline will share any profits made by that member. One subtree is known as a Power Leg while the second subtree is a weak leg.
The way the binary plan works is very simple. The profit margin here depends solely on your downline being active. Most companies that operate with the binary plan give compensation based on the weaker leg. That is to say, the binary bonus is paid based on the sales of the left team if it has fewer business sales than the right team.
The binary plan inspires the downlines and the uplines to work harder and by so doing create further growth in the organization. Members are shard to down-lines irrespective of who recruited them in a process known as spillover. A Hybrid MLM program plan manages all concepts of a binary MLM plan with ease.
MLM companies create join commissions to encourage their MLM members and attract more new members to join the binary network. this commission amount is credited to the user’s account at the time of joining the network.
The referral commission also referred to as the sponsor commission/leader bonus or the introducer bonus is the benefit gotten by a user for introducing new members to the downline network. The commission is calculated based on the percentage or fixed of amount the company has already predefined. The commissioned amount is automatically credited to the user’s account.
Pair commission or binary commission. the distributor or user sponsors new members to balance both legs with active members. when the user balances both legs with the active leg, the user will be able to achieve pair commission. The commission is calculated based on the percentage of the amount the company has already defined.
Companies create their own custom bonus to motivate their distributors and attract more distributors to join their binary network. this bonus amount is automatically credited to the distributer’s account based on their referrals which are defined by the company.
In the royalty bonus, when a certain set target is achieved by distributors, then all the eligible members receive a certain percentage of the amount as a bonus as per the company’s rule.