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The meaning of binary is something made of two things or parts, here in the MLM binary plan, binary stands for two parts, left part and right part or you can say left leg or right leg or some company gives the name power leg and Profit leg. When anyone wants to introduce a new person then they have only two options to place, they can place in the left leg or in the right leg. Placement will be auto one under the other.
In the binary MLM system power leg is enriched by upline and the users placed by upline after you in the same leg. While profit leg is the user self build up leg with the help of own team. Some companies make it necessary to place one user in both legs(1:1) to get started earning and some others make it necessary at least one in the power leg and two in the profit leg(1:2) to get started earning.
Most MLM organisations use a binary compensation plan. In the binary compensation model, a member can recruit only two members at their first level. The leg which has less number of IDs or less turnover than the other leg is called the weak leg or working leg and the bonus is calculated on the basis of the working leg business. So more business in the working leg, more will be the bonus.
The simple rule of thumb of a binary MLM software design is to add or sponsor two participants to the downline, as this is how a binary tree is built. The "sponsor bonus" or "referral bonus" is a monetary reward for bringing new contributors into the network. Some agencies will offer unique programs to choose from during registration, so the direct referral fee percentage will be calculated based on the package your downlines select.
The pairing bonus is the amount paid after completing the binary tree, i.e. gaining the bonus based on the sales of downline members. The most significant pairing bonus will be calculated using the layout you select and the company's consistent policies. A capping (a restriction or limit on pricing or expenditure) per day may be included in an MLM binary software layout. This disadvantage is entirely due to the company's policies
In the Binary MLM graph, the Matching Bonus assists all sponsors in obtaining good earnings from their respective downline members. In a nutshell, it's the payment received for bringing new members into the network. The mentor member who sponsors downline participants can benefit from bonuses that downline contributors earn, and these earnings are called matching bonuses. The match bonus will increase up to n generations and will be mainly determined by the compensation chart selected by the MLM Company binary system.