With so many MLM compensation plans out there, it is quite hard to find the exact and perfect match for your company’s needs. One of the most popular network marketing plans would be the binary MLM compensation plan that offers rapid growth opportunities. This simple two-option system allows great balances between distributor growth and business by promoting teamwork in its system along with great compensation. Many network marketing businesses utilized a Binary system MLM with a Binary Compensation plan in their management and automation of their operations and processes. These include prospecting, marketing, recruiting, successful payout processes, and training.
What Exactly Is A Binary MLM Plan?
Binary MLM Plan is a compensation plan that is structured with two legs (right and left) under a main distributor. By welcoming new users, more subtrees are added and a binary tree is formed. New members joining will be placed at the downlines or on the next business level. This process is continuous and will continue to multiple and increase in levels and depths. Through the plan, it will help distributors to attract more users into the network and in turn, increase recruitment and sales as well as improving growth and business opportunities.
However, companies that use binary compensation plans would need proper tracking of all the subtrees and branches made. Therefore, having a smart MLM software would help in managing, controlling and organizing their network easily.
How Does It Work?
Many top reputable MLM companies use Binary MLM plan as their network marketing compensation tactic. New members would be added to either the left or right branches. To form a binary tree, two new members must be added on either side of the subtree. After forming the binary tree, all new members would be spilled and placed on downlines.
Take note that distributors are a part of the binary tree through purchasing an enrollment package which refers to a service or a list of products. By buying the package, a distributor is officially a part of the binary MLM system.
Binary Spillover Preferences
Once the first level of the binary tree is complete through sponsoring two new members, the next batch of members will be placed or automatically spilled to the next available level. The spillover preferences may vary between different binary MLM companies. A few binary spillover preferences includes:
- Extreme left or right spilling
- Weaker side or Pay leg spilling
- Balanced spilling
- Multiple Position Spilling
Advantages of Binary MLM Plan
There are a few benefits in using a binary MLM Plan. One of the most beneficial aspects of the Binary MLM plan is its unlimited depth which allows distributors to add new members to unlimited levels while still allowing members to earn a high income.
Due to its left and right leg spilling preferences, the distributors are active in working with new members in order to balance the binary tree for fair compensations. This also offers quick business growth opportunities.
Another advantage would definitely be its carry forward functions where unpaid sales volume (SV) can be carried forward to the next payout cycle, even after the present binary payout cycle.