mlm binary plan to run mlm business

MLM BINARY PLANBest 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 Ratio is 1:1• And Set value is 250

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1 L R 2 3

7 5 3 3 1 3

- 1 1 1 1 1 1 Set 1

__________________________

6 4 2 2 0 2

- 1 1 1 1 Set 2 ___________________________

5 3 1 1

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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) = 1250Comm for 2 = 3*250=750Comm for 3 = 1*250=250The root member will get 1250 Rs commission.

Continue…… 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 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

PV BASED BINARY PLAN• Here in this plan we have been provided with the

package value, PV’s, capping value, capout income, pool reserve

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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 ChargeSuppose the TDS limit for the 1st payout is decided

Rs.2500 by the company as below 200

300700

1000 ___500_______________

TDS limit crossed hence TDS (10 %) = 270 on all amount.

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• Capping valueThe 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.

Thank You

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