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A Binary MLM compensation plan is a type of MLM compensation plan that uses a binary tree structure to pay commissions to distributors. In this type of plan, distributors are divided into two teams, left and right, and are rewarded for the sales of products or services generated by their teams.
Enrollment: A distributor enrolls as a member of the Binary MLM compensation plan and is placed at the top of the binary tree structure.
Example: Suppose, a distributor enrolls as a member of a Binary MLM compensation plan, and builds two teams, a left team and a right team. During the first pay period, the left team generates 50 units of sales volume, and the right team generates 75 units of sales volume. In this case, the weaker team is the left team, and the distributor would earn a commission of 10% of the left team’s sales volume, which is 5 units.
Binary MLM compensation plan is a type of MLM compensation plan that rewards distributors for the sales of products or services generated by their teams. The plan is designed to incentivize distributors to build both their left and right teams, and to balance the sales volume between the teams.