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BINARY MLM COMPENSATION PLANS
This binary MLM plan is defined as a compensation plan that consists of two legs or subtees under every distributor. Upon adding subtess, a binary tree gets formed. New member joining after them are spilled over to the down lines or next business level.
This binary MLM compensation plan is the most popular network marketing plan with rapid growth opportunities.
The two- legged plan balances business and distributor growth by encouraging teamwork with attractive compensations. Network marketing companies with binary compensation plan use a binary MLM software to effectively manage and automate their processes and operation. This software can automate marketing , prospecting, recruiting , training, and payout processes successfully.
For MLM companies , binary compensation plans provide opportunities to manage the organization’s growth and more precisely estimate commissions and bonuses. Typically , MLM companies will set a cap on the commission by defining a set commission percentage for each tier of representative earnings in the pay leg, once of the main benefits of binary MLM compensation plans in the teamwork they inspire because balancing the pay and reference legs maters to all of the representatives, it is in everyone’s best interest to help the weaker leg. And when one representatives has recruiting success, both legs and the downline share in the impact..