MLM Plan simply refers to a framework that lays the groundwork for MLM or Network Marketing. In other words, it is the method through which you will conduct MLM activities.
They have a wide range of MLM Plan options to choose from. The person who comes to Network Marketing is free to choose an MLM Plan that is acceptable for him.
The very common plan in any Network Marketing is Binary Plan. Let’s know about the Binary Plan in detail.
A binary MLM plan is defined as a compensation plan for each distributor that has two legs (left and right) or subtrees.
Subtrees are used to construct a binary tree. New members are then divided into downlines or the next company level. This plan is the structure of binary MLM software.
Binary Plan is the simplest and most popular among all other MLM plans. This plan was introduced in late 1980 and has become the most popular MLM plan.
The binary compensation structure is essentially an infinite-depth two-width matrix MLM design. In a Binary structure, only two people can join in the first level but the level can be unlimited. That means each person can only have two downlines, left and right.
New distributor-sponsored members are added to either the left or right leg. A binary tree is built by adding two additional members on either side of the subtree.
After forming a binary tree, all new members referred to the downlines are spilled. The following cases will show how the downlines are spilled.
The following are some scenarios that form binary structure;
It shows the relationship between the sponsor, parent and downlines.
Sponsor: The sponsor is the person who introduced you to a network marketing company where you are going to join.
Parent: The parent is the direct upline of the newly admitted member in a binary tree.
Downline: Downline is the distributor who is introduced by the sponsor.
This is the promotional bonus to users,mainly rank bonus calculated referral count,left users and right users count or the total number of members under a specific rank on binary tree.
Here, the Sponsor and parent of these two downlines are the same and are A. After appointing B and C as his downline Binary of A will be ready to get a commission.
In this situation, X introduced A and C and placed C as A’s downline. Then A introduced a new downline B as his left leg. Here, A is the parent and sponsor to B
For C, A is the parent and X is the sponsor. Because A is the direct upline of C but sponsored by X.
In this situation, X sponsors A and B. A is placed in the direct left leg of X and B is placed under the left leg of A. Here, B is placed on the extreme left leg of X and is the spillover.
When the two legs of the distributor are filled, he can sponsor downlines in the next level as spillover. It is simply called Normal or Typical Spillover.
Here, Y and Z are the Typical Spillovers of X.
When you look at the image, you can see that the two spillovers happened on opposite sides of X, but one doesn’t form the binary tree completely.
By attaining a particular quantity of sales volume, binary fees can be collected. The binary plan has no depth restrictions. Each sale will be made in increments based on the particular quantity of the required sales volume.
The extent of commission sales made on the lines between you and that individual is the limiting element for collecting a commission from that individual, not the depth at which it is located. Each position is separated into left and right sides, with the binary plan yielding a reward based on a previously defined volume match. There are no minimum sales volume limitations for groups.
The branches of a binary plan must be balanced. Every plan has a daily or weekly cap. It is the final key that defines the maximum distribution payments and was previously calculated by the programme.
Now, let’s look at how we calculate commission.
We offer three kinds of commission to binary plans, that is referral/ sponsor bonus, binary/ pairing bonus and rank bonus.
A new member might be placed in the LEFT OR RIGHT POSITION under your position if they receive a referral incentive. You will be awarded a Sponsor/Recommendation bonus of X amounts fixed percentage(x per cent) or a fixed amount for each direct referral you make (x).
The amount of referral money distributed by some companies is determined by the value of the purchase bundle. Some of them are also dependent on sponsor position.
The commission amount is automatically credited to the sponsor's account when the registration is completed and approved by the administrator.
On a binary MLM plan, a user can receive a pair/binary bonus for as long as they are registered. If a new user registers the former user's LEFT leg, a predetermined quantity of PV/BV is credited to the previous user's LEFT leg, and the same process is followed for the RIGHT leg.
Admin can set the PV/BV amount to a fixed value of X, as well as the pairing commission, and the distribute pair value to the upline user depth to X. Additionally, from the admin section, admin can limit the binary commission distribution by the user by day, week, month, and year.
This is the promotional incentive given to users, which is based on referral count, left and right user counts, or the total number of members in a binary tree under a specified level.
Neo combines all the features of Binary Plan in Binary MLM Software. We integrate supporting features such as Replication, Autoresponder, Ticket System, Multi-currency, Multi-language, Promotional Tools, Lead Capture and Payment Gateways with our Direct Selling Software. In this way, Multilevel Marketing Software, that Neo provides, will assist you to get the best earning in a legal way.
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