A binary plan is a Multi-Level Marketing (MLM) compensation plan, quite popular among companies, MLM business individuals, part-time professionals, network marketers, and all the other members who wish to set up an MLM business. Consequently, the members can have only two forefront members. This means that there can be only two legs underneath. In this situation, one side is referred as power leg while the other side is attributed as profit leg.
In a situation where a member sponsors more than two new members, excess members are placed at levels below the sponsoring member's forefront. This 'spillover' is an attractive feature that appeals new members since they only need to sponsor two members to participate in the binary compensation plan.
In a binary plan, the structure grows faster which is beneficial for a business to earn and grow quickly. There are several advantages of an MLM binary plan software such as rewards earned by members from team sales even though they may have only introduced 2 members on a personal level. Additionally, matching bonuses awards incentives and encourages members to earn more.
Power leg in an MLM Binary Plan grows even when a previously enrolled member recruits new members and gets added to the tree on the leaf position. On the other hand, the profit leg increases when a new member is introduced for self-benefit as well. Some other criteria also matches for binary compensation distribution such as 1:1, 1:2, or 2:1 concept.
Binary compensation plans are dynamic due to their unlimited growth potential. However, they can also be intimidating and quite complex to manage. Awapal Solutions offers comprehensive, easy and feature-packed MLM Binary Software that has the potential to make this challenging pay structure profitable and easy to administer.
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