In Multi-Level Marketing (MLM), binary income is calculated based on the performance of two sales teams, commonly referred to as the left and right legs. The commission is earned when the volume of sales generated by one leg is balanced by the volume of sales generated by the other leg. The binary income is calculated based on the volume of sales on the stronger leg, with a percentage of the volume from the weaker leg being added to the commission earned. The specific calculation and commission structure can vary from company to company and is usually outlined in the compensation plan.
The exact formula for calculating binary income in an MLM system built using different CMS platforms such as Opencart, Magento, WordPress, Drupal, or Laravel may vary, as it is determined by the MLM software or plugin being used.
However, a typical formula for binary income calculation in an MLM system is as follows:
Commission earned = (Volume on the weaker leg / Volume on the stronger leg) * Commission rate
In this formula, the volume on the weaker leg is typically capped at a certain percentage of the volume on the stronger leg. The commission rate is usually determined by the MLM company and can be based on a variety of factors, such as the level achieved in the MLM structure, the volume of sales generated, or the type of product sold.
It is important to note that the binary income calculation is only one aspect of an MLM compensation plan and that different MLM companies may have different formulas, commission structures, and qualifications for earning binary income.
Binary MLM software refers to software that supports multi-level marketing (MLM) business models based on a binary compensation structure. This type of MLM model has two legs, a left, and a right leg, and members earn commissions based on the performance of their two legs. The binary MLM software helps automate various tasks such as member tracking, commission calculations, and reporting, making it easier for MLM businesses to manage their operations.
Binary Multi-Level Marketing [MLM] Plan Software is a web application that integrates with the Magento, Drupal, WordPress, and OpenCart Module and helps to manage binary MLM networks.
Member Management: This feature allows administrators to manage the details of members such as personal information, payment information, and member status.
Binary Tree Structure: A visual representation of the binary tree structure that shows the placement of members and their downlines.
Commission Calculation: Automated calculation of commissions based on the performance of each member's left and right legs.
Genealogy Tracking: Ability to track the growth of the network and see the entire hierarchy of members.
Reporting: Generate reports on commissions, member activity, and network growth for analysis and decision-making.
E-wallet and Payment Integration: Integration with payment gateways to allow for easy and secure transaction processing.
E-commerce Integration: Ability to integrate with e-commerce platforms to allow members to sell products through their network.
Marketing Tools: Features like email campaigns, SMS campaigns, and lead capture forms to help members grow their network.
Mobile compatibility: Responsive design and mobile app support to allow members to access the platform on the go.
These are some of the common features of binary MLM software, but different software providers may offer different features and customization options.
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 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 is 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.
Here are some of the advantages of using a binary MLM compensation plan and binary MLM software:
Simplicity: The binary structure is easy to understand, making it easier for members to grasp the concept and participate in the business.
Faster Growth: The binary structure encourages members to grow their businesses by expanding both legs, leading to faster growth of the network.
Unlimited Income Potential: The binary structure provides unlimited income potential for members as their earnings are not capped, allowing them to earn more as their network grows.
Automated Commission Calculations: With the help of binary MLM software, commission calculations are automated, reducing the risk of errors and saving time for the business.
Improved Member Tracking: The software helps track member activity and performance, providing valuable insights into the growth of the network.
Increased Productivity: Automated processes and streamlined operations can lead to increased productivity and efficiency for the business.
Access to Advanced Tools: Binary MLM software often comes with advanced features like marketing tools, payment integration, and mobile compatibility, allowing members to grow their businesses effectively.
These are some of the advantages of using a binary MLM compensation plan and binary MLM software, but results may vary based on the specific MLM business and its members.