Binary Plan is best compensation plan to run an mlm business. Binary plan is easy to understand and works effectively. This presentation helps you to work well with binary plan.

1. MLM BINARY PLAN
Best Multilevel Marketing Compensation
Plan

2. 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.

3. BINARY PLAN
Showing Binary plan

4. Continue……
• 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.

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

6. Binary Plan Logic
• Here Ratio is 1:1
• And Set value is 250

7. Continue……
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

8. Continue……
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

9. Continue……
• 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.

10. 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

11. 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

12. PV BASED BINARY PLAN
• Here in this plan we have been provided with the
package value, PV’s, capping value, capout
income, pool reserve

13. Continue……
• 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

14. 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.

15. Continue……
• 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.

16. Thank You
Contact Address
Srv. No.-440/441, First Floor,
Opposite to Ladkat Petrol Pump,
Narpatgiri Chowk, Mangalwar Peth,
Pune-411011,
Maharashtra (INDIA)
Website: http://www.sankalptech.com