Binary Plan Level MLM Software

This is network marketing software designed to automate binary compensation multi-level marketing plans. This software provides multiple features to manage and compute binary marketing functions such as profile management, graphical analysis, commission calculations, payout distribution, and many others.

Admin Demo User Demo

What is the MLM binary plan?

A binary Plan is a type of multi-level marketing (MLM) compensation plan used in multi-level marketing organizations to generate profit through commissions. It is based on a tree structure. Each distributor is placed on either side of the downline and has two nodes, a left, and a right node. When a distributor recruits a new member, they are placed either in the left or right node– where the vacancy is available.

How does it work?

The MLM binary compensation plan works by leveraging the power of the network through the distributor’s downline. It operates by building a binary tree of two nodes. Each distributor can recruit two members directly beneath them. Additional recruits beyond the first two are placed in the next available position in the binary structure, following a “spillover” pattern. This process continues to limitless levels and depths.

The commission of the binary plan is based on the sales generated by the distributor’s downline. The commissions are paid based on the node with the least volume of sales, also known as the weaker node or pay node. A distributor starts earning when the two nodes beneath the distributor are filled and continues earning commission whenever a new member is joined in the downline.

How Is Commission Calculated?

The commission is calculated by multiplying the sales volume of the weaker node by the commission percentage to determine the commission earned on that node. Sales volume can be achieved by recruiting or referring members to the binary structure or through product sales. The commission will be calculated in the weaker node, with a lower sales volume. The commission can also be earned by simply referring new recruiters to the downline. Once the distributor’s downline is filled the entire upline distributors can earn a percentage of commission depending on the rank or the policy.

The commission can be earned by personal volume, where the distributor’s personal purchases or sales generate the sales. It can also be earned through group volume, which is generated by the distributor’s downline organization.

The commission depends upon personal volume. Personal volume can be achieved by recruiting or referring a member to the tree. Each addition generates a minimum of 100 PV, it can also be more depending on the packages. When the two-node structure is completed with a minimum of 100 PV in both nodes, then the sponsor will be rewarded a commission. When additional recruitment is joined to the network, PV will be distributed to all the upline distributors in the network.

So in this way, the distributors continue to earn a commission as new members join under them. The commission is paid on a weekly, monthly, quarterly, or yearly basis as per the admin’s settlement.

Advantages of MLM Binary Plan

  • This straightforward structure is easy to understand with two nodes. Each distributor can personally recruit two members. Therefore it is to track and analyze the performance.
  • The balanced tree structure promotes symmetry in the network. The breakdown of the network in terms of two branches leads to more organized and balanced growth.
  • The distributors have the opportunity to earn more significant outcomes by focusing on building both nodes together.
  • The network system also supports a spillover feature, where individual efforts are not mandatory as sponsors in the upline can refer new recruits to their downlines