A binary plan is a multilevel marketing compensation plan which allows distributors to have only two front-line distributors. If a distributor sponsors more than two distributors, the excess are placed at levels below the sponsoring distributors front-line. This “spill over” is one of the most attractive features to new distributors since they need only sponsor two distributors to participate in the compensation plan.Read More
There are various types of binary plan likewise
• Simple Binary • Australian binary
• Hyper Binary • Level Binary
The plan grow is from top to bottom. Any member can immediately sponsor only two members as shown in fig.
Advantages of Binary Plan
• Your personally introduced people always remain under you and all their team building efforts continue to benefit you.
• Your personally introduced people can earn more than you if they have built a better team but they do not split away from you or jump over you.
• People can earn rewards from team sales even though they may have only personally introduced 2 sales.
• A binary plan allows every member a more equal opportunity to earn rewards from the same size teams and distributes rewards more fairly.
• A binary allows you to get paid to UNLIMITED depth in your team and there is NO disadvantage working with people a 1000 levels deep in your team.
• Your upline’s personal and team sales can spill over into your team and count towards your team sales.
• Any team sales that you have not yet earned on regardless of depth are STORED and carried over to future pay cycles where you can earn from them when you qualify to do so. In Uni-level plans and other pay plans the volume that is below your pay levels is flushed at the end of the pay cycle and you never earn off that volume in the future.
• Matching bonuses create an incentive to help the people you introduce earn more, the more they earn the more YOU earn!
Board plan is a 2*2 matrix plan, but the structure is represented in rectangular form. The structure of the board is fixed. It may be of 1-2-4, 1-2-4-8, 1-2-4-8-16. After all places filled in a board, it becomes split into two new boards & topmost ID is out from the board. In this way the no. of boards gets increased on each splitting.Read More
• Feeder board • Main board
This is the first board. When member joins the company he will get entry in Feeder Board. Normally the structure of the board is 1-2-4 or 1-2-4-8.The board is filled from bottom to top & right to left . On joining the member gets placed in the available position of adjusted to sponsor’s board.
After completion of Feeder Board the ID enters into the Main Board. Normally the structure of the board this board is 1-2-4 or 1-2-4-8. The board is filled from bottom to top & right to left .On completion of feeder board the member gets the place in the available position in the sponsor’s board. If the sponsor is not available in the “main board” then the ID gets entry in the up line sponsor’s board. In case of unavailability of the up line sponsor the down line get searched.
Board Shuffling & Splitting
After the board gets filled the board get shuffled i.e. the position of IDs in the board get re-arranged. The condition of shuffling the IDs is mainly with respect to no. of directs or no. of adjusted to IDs.
After shuffling of the board, the board split into two boards. Board will split at that very moment when all the boxes get filled. At no point of time a board will remain without splitting, if all the positions are filled. On every splitting the no of boards get increased. After splitting the top ID of the board move to the higher board.
• In this plan there is less dependency on the down line or up line of the member to get the income.
• This is also called as revolving matrix.
• In board, members are placed in FIFO (First Input and First Output) basis.
• The board plan follows the following process.
• Position in the board
• Filling of the board
• Shuffling of the board
• Splitting of the board
The Matrix Plan is a compensation plan that has a set width and depth for organization. There are many variations to this model, but the basic concept is the same. A matrix plan is the one in which the tree grows in ‘n X n’ structure only. Matrix can be of 3X3, 4X4 etc. Spill concept is applicable if matrix plan is of 3*3. In this case, 4th onwards direct is called as Spill and can be placed in down line structure of sponsor as per respective Spill logic.Read More
Consider 3X3 matrix, here every member can immediately sponsor maximum three members. All the positions in the matrix plan are sequentially filled from Left to right and top to bottom. The user is not allowed to select the position. He can only select the sponsor. In this plan the member will get commission on level basis for particular payout period.
Auto Matrix Plan
•The only difference in the Matrix and Auto Matrix is, in Auto Matrix member is not even allowed to select the sponsor.
• He will be placed in the available free position. The position is selected in a pattern Top to bottom and Left to Right.
• Rest all the calculations will be same.
• This plan is never alone it is always clubbed with some other either Binary or Generation.
In Generation Plan a member can have ‘n’ number of directs. It grows horizontally bigger than vertically. Member can sponsor n number of directs. The flow/grow is from left-to-right & top-to-bottom.
Generation plan is based on generation structure. All directs of single sponsor is considered as first level of sponsor. Generation income is distributed as per generation levels. In general practice, generation income may be distributed in terms of % of joining cost, may be as per pre-defined amount per level, and may be % of repurchase BVs. Generation income is given to up line of each new paid joining.Read More
In Generation Plan, commission is calculated by 2 different ways
Level wise Income
Here each member gets the commission level wise. Income for per ID is Fixed according to its level.
Here product selling is main motto. It is one of the concept regarding Repurchase. Purchasing of products from the company other than the joining kit is called as repurchase.
This plan is based on purchase BV/PV. Company decides maximum allowed percentage to be distributed among the members. So each member gets difference between maximum PV percentage he can get and percentage PVs which are already distributed in down line. As commission depends on difference between down line and up line PV percentage so this plan is termed as “Differential Plan.” Read More
• Person who has not done registration but purchasing products is termed as Walk-In customer.
• When member purchase product, he/she will get benefit in the form of BV/PV.
Business Volume / Personal Value (Point Value) (BV/PV)
The BV’s/PV’s are pre-defined for the different products. When member purchase product, he/she will get benefit in the form of BV/PV. Generally repurchase commission are calculated with product BVs/PVs.
• Self PVs/Own PVs – PVs generated due to repurchase of member himself is termed as Self/Own PVs. Zero level is termed as Self Repurchase.
• Down line PVs- PVs generated due to repurchase of down line members is termed as down line PVs.
• Group PVs- Summation of self-repurchase PVs and down line PVs is termed as Group PVs.
Each member gets difference between maximum PV percentage he can get and percentage PVs which are already distributed in down line. Summation of self-repurchase PVs and down line PVs is termed as Group PVs. Differential income is always distributed as per fresh (New) PVs in the payout period.
Defining slabs may depend on either cumulative/fresh PVs depending upon business plan. Always Consider maximum percentage already distributed to down line. Determine group PVs of member for which calculation to be done. Determine slab and slab % as per group PVs. Consider difference between slab % of member and maximum distributed % on down line PVs. This difference percentage PVs should be the differential income of respective member.
This plan allows unlimited Sponsoring on the first level. The structure can spread as wide as you are desired to make it. This structure avail unlimited potential of earnings from your front line recruitments.
There are no width limitations to this plan (I.e. there is no limit to the amount of people you can sponsor in your frontline) and commissions are normally paid out on a limited depth (common plans that we have reviewed pay commissions between 3 and 9 levels deep). Therefore, the common goal of this plan is to recruit a large number of frontline distributors and then encourage them to do the same.Read More
Some of the times some Companies kept a Condition of “number of active distributor” that need to be qualify to earn the higher levels of incomes/Bonuses for example the most known Bonus for unilevel plan is “Infinity Bonus”. And most Unilevel plans incorporate roll-up and compression which enables an active distributor volume to reach deeper.