MLM BINARY PLAN

Best Multilevel Marketing Compensation Plan

BINARY PLAN
The Binary plan is an organizational plan used by multi-level marketing (MLM) organizations wherein new organization members are introduced into a Binary Tree structure, or a left and a right subtree. one subtree is referred to as a Power Leg while the second subtree is a Profit Leg.

BINARY PLAN

Showing Binary plan

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Always ratio and set value is predecided by the company. Take higher ratio from that leg count which is higher. Always first payout should be calculated using 1:2 or 2:1 ratio and remaining will be using 1:1 ratio. Total Count = No of sets * Set value. Carry forward of first payout will be taken as brought in next payout period.

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For next payout BF + New count _____________ Total - Ratio ______________ Sets value * No of sets ____________ 2 nd payout

Binary Plan Logic

Here And Ratio is 1:1 Set value is 250

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1L R 2 3 7 5 3 3 1 3 - 1 1 1 1 1 1 __________________________ 6 4 2 2 0 2 - 1 1 1 1 ___________________________ 5 3 1 1

Set 1

Set 2

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5 3 1 1 - 1 1 1 1 Set 3 ________________ 4 2 0 0 - 1 1 Set 4 _________________ 3 1 -1 1 Set 5 _________________ 2 0 Carry Forward

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Since 5,3,1 sets are formed as per Comm for 1 =No of sets * Set value = 5*250(As given) = 1250 Comm for 2 = 3*250=750 Comm for 3 = 1*250=250 The root member will get 1250 Rs commission.

For 1 Carry forward 2 0 New Count + 4 3 _______________________________ Set 1 6 3 1 1 _______________________________ 5 2 Set 2 ________1___1____________________ Set 3 4 1 1 1 ______________________________ 3 0

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For 1 Carry forward 2 0 New Count + 4 3 _______________________________ Set 1 6 3 1 1 _______________________________ 5 2 Set 2 ________1___1____________________ Set 3 4 1 1 1 ______________________________ 3 0

Carry forward

 Here in this plan we have been provided with the package value, PVs, capping value, capout income, pool reserve

PV BASED BINARY PLAN

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Reserve Amount 5000 =Reserve Amount-Fixed value =5000-2800=2200(V V) Set value =Variable value/ Varible pairs =2200/ 14 = 157(Set value variable) Variable amount=5*157=785 5*157=785 4*157=628

DEDUCTIONS
Cumulative Earning Total income of all payouts till date is called cumulative earning. TDS+ Processing Charge Suppose the TDS limit for the 1st payout is decided Rs.2500 by the company as below 200 300 700 1000 ___500_______________ TDS limit crossed hence TDS (10 %) = 270 on all amount.

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Capping value The maximum value decided by the company for the particular payout. Simulation When company has Distribution Amount > Reserve Amount then the condition is called simulation. Advance deduction The deduction of advance will be always done from The net amount and the percentage of amount to be deducted will b calculated from gross amount.

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