Binary MLM Plan : 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 place 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.
For joining the network of a Multi-level Marketing (MLM) business, you have to choose a compensation plan which calculates your commissions and determines your payout. A majority of direct selling companies offer compensation through the binary commission plan.
MLM companies create join commission to encourage their MLM members and attract more new members to join binary network. this commission amount credit in user’s account at the time of joining the network .
The referral commission is also referred as 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 the 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 member to balances both legs with active members. when the user balance both legs with active leg, user will be able to achieve pair commission. The commission is calculated based on percentage 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 company.
In the royalty bonus, when a certain set target is achieved by distributers , then all the eligible members receive certain percentage of amount as bonus as per the company’s rule.