Binary Plan
It is the most popular plan in the world of MLM. The Binary plan is used by Multilevel Marketing (MLM) companies where members are introduced into a tree format like a left and a right sub tree. Payout is calculated when pairing of level is complete. Following is the image representation of Binary Plan.
A Binary Plan is like a 2xInfinity Forced Matrix with a Twist. In a Binary you would have 2 Legs. You would typically earn a commission on the Entire Volume of your weakest Leg. Many binary's have systems in place that may allow you to earn Commissions at a later (via a Carryforward) on your Strongest leg.
Tri- Binary Or Australian Binary plan Looks Very Similar. Only Difference Between During The Payout For Pair Matching Required In Tri-Binary, Where As No Matching Required In Australian Binary.
How Does the Binary Compensation Plan Work?
The Binary Plan as the name suggests is based around the number 2, which represents the maximum number of frontline associates that any business centre can have. Any additional distributors must then be placed under one of your existing frontline members. This creates a very supportive environment for new members as the easiest way for associates to achieve success is by assisting their new members to build their organisations. This team approach makes the binary plan very attractive as there is a lot of support (both initial and ongoing) as all associates within your organisation work towards achieving a common goal.
The main earning objective of the binary compensation plan is to balance the amount of leg volume flowing through either side of your business centre. For example if you had 800 sales points flowing through the left leg of your business but only 500 points flowing through the right, you are paid out on the highest common denominator which in this instance is 500 points. When the Binary Plan was first introduced any additional volume (ie the extra 300 points on the left) would be lost making it difficult for part timers however more recently most binary plans now allow any additional volume to be carried over to the following commission period. This carry over feature has proven to be very popular for part-timers as it means that you dont ever lose any of the sales volume that you have acquired.