A binary plan is a compensation structure used to pay commissions to distributors in a network marketing, or direct selling organization. In a binary plan, commissions are only paid on sales made by distributors who are placed in the downline of the sponsoring distributor. In other words, a sponsoring distributor can only earn commissions on the sales of his or her downline.
The binary compensation structure is typically used in companies that sell products through a network of independent distributors, also called independent business owners (IBOs). In a binary plan, IBOs are only paid commissions on the sales of products made by the IBOs in their downline. Theoretically, this should encourage IBOs to focus on building their downline in order to increase their earnings. Binary MLM Software in Delhi or other cities allows companies to manage their entire binary network, calculate commissions, and generate leads.
In a binary compensation structure, there are typically two legs, or sides, to the organization. The left leg is typically referred to as the power leg, and the right leg is typically referred to as the profit leg. Power leg is a leg in which distributors get paid for the sales of the products on their own.
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