Network Marketing: Binary
 All Binary pay plans are fixed width in nature, limited to no more than
two frontline individuals for any income center. One of the two
frontline is referred to as the head of the “Left Team” and the other
the head of the “Right Team”.
Sales volume is then accumulated between
each team to unlimited depth. While the methods of qualifying to
accumulate volume can vary slightly from pay plan to pay plan, most
Binary compensation plans will pay on accumulated volume in one of the
three following fashions:
- 1/3 – 2/3 Plan; this plan type calls for a prescribed number of
sales to be present in total between both teams, with a minimum of
1/3 of the required volume present in one of the teams. E.g. 9 total
sales with a minimum of 3 in one team pays a $50 commission.
- 2. 50 – 50 Plan; this plan type also calls for a prescribed
number of sales to be present in total between both teams, however
it looks for an equal number of sales between teams. E.g. 10 total
sales with a minimum of 5 in each team pays a $50 commission.
- 3. Weak Leg %; this variation of the Binary pays commissions on
a percentage of the sales in the weak leg when a prescribed number
of total sales are present between both teams. E.g. have 10 total
sales between both teams and you will receive 10% of the sales in
your weakest leg (Note: weakest leg being the one with the fewest
sales present).
Many Binaries also break payment of commissions down into what are
referred to as “Steps” and “Cycles”. The term Cycle refers to the payout
of a full commission amount. The term Step refers to increments of Cycle
payout intended to get money into a distributor’s hands as quickly as
possible.
As an example, a company may have a $300 Cycle that pays in three
Steps. When 1/3 of the necessary sales have been gathered a $100 payout
is issued. When 2/3 of the necessary sales have been gathered a second
$100 payout is generated and the final $100 is paid when the remaining
1/3 of the required sales is collected.
Once sales are paid upon, a Cycle has been completed and those sales
are removed from a distributor’s Left and Right team counts.
For additional information on Binary pay plans, please contact
MultiSoft at     239 945-6433 or
sales@mlmasian.com .
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