The document discusses a binary plan compensation model used in multi-level marketing. A binary plan allows distributors to have only two front-line distributors, with any additional distributors placed in levels below. Distributors earn commissions based on the number of pairs formed between their distributors in the two branches, rather than levels. Advantages include more equal earning opportunities and incentives to help those introduced earn more. The document provides an example of how payouts are calculated in a binary plan based on pair formation and volume.

1. 08/14/13
Sankalp Computer and Systems Pvt Ltd

2. Binary Plan
 A binary plan is a multilevel marketing compensation plan which allows
distributors to have only two front-line distributors.
 If a distributor sponsors more than two distributors, the excess are placed
at levels below the sponsoring distributors front-line.
 You can sign only two people onto your first level. Everyone else goes
beneath those people. One of the good feature in binary plans is that you
are not paid base on levels at all, but instead, on a specified, maximum
purchases (over some period of time, often weekly).
 Since you can only sign two people directly under yourself, you end up with
a structure that has two "legs" - two spots that in turn have all the other
spots under them.
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3. Binary Plan Flow
RegistrationRegistration
Confirm RegistrationConfirm Registration
Payout CalculationPayout Calculation
Confirm PayoutConfirm Payout
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4. Session Includes:
 Binary Plan
 Binary Plan Flow
 Binary Plan Advantages
 Binary Plan Requirements.
 Types of Binary Plan
 Payout Calculation in Binary Plan
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5. Binary Plan Advantages:Binary Plan Advantages:
 A binary plan allows every member a mopre equal opportunity toA binary plan allows every member a mopre equal opportunity to
earn rewards from the same size teams and distribute rewards moreearn rewards from the same size teams and distribute rewards more
fairly.fairly.
 A binary allows you to get paid to UNLIMITED depth in your teamA binary allows you to get paid to UNLIMITED depth in your team
and there is no disadvantage working with people a 1000 levelsand there is no disadvantage working with people a 1000 levels
depth in your team.depth in your team.
 Matching bonuses create an incentive to help the people youMatching bonuses create an incentive to help the people you
introduce earn more, the more they earn the more YOU earn.introduce earn more, the more they earn the more YOU earn.
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6. Binary Plan Requirements:
1.Binary Plan Requirements
2. Commission Related
3. Achievement Award/Reward
4. Deduction from payout
5. Registration number and login ID
6. Facilities required for members
7. SMS related(mobile SMS)
8. Convention for members
9. All Reports/Transactions
10. Cheque Printing
11. Domain related information
12. Company Information
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7. Types of Binary Plan:
1. Daily Binary
2. Level Binary
3. PV/BV Binary
4. Hyper Binary
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8. Payout Calculation in Binary Plan
Considerations
1.Ratio required to form a first pair is 1:2 or 2:1
2.After that second set onwards ratio required is 1:1
3.Set value for first pair is Rs.300
4.Set value for second pair onwards is Rs.200
5.TDS Amount 11.33%
6.Service charges 2%
Steps
Step 1: Joining Date of Members: 01/07/10
• Member will join by Epin/DD/Cash/Credit.
• U is the root id joined by Epin.
UU
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9.  Under root id two members get joined A and B; on left and right side
U
Respectively. U is sponsor of A and B.
AA BB
UU
DD
CC
BBAA
UU
Under A one more members joins on left side and one member on right side.
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10. A is the sponsor for both C and D.
These all members are joined on 01/01/2009.
Calculation for first payout (01/07/2010 to 01/07/2010)
In this payout U has been qualify for income.
Left Count of U: 3 (A, C, D)
Right Count of U: 1 (B)
Total No. of pairs: 1
First Pair: 2:1
Carry Forward: 1:0
Set Value for 1st
Pair: 300
Binary Pair Amount/ Commission:
Total Commission=No. of Pairs * Set Value
Total Commission=1*300 = 300
TDS= 11.33/100 * 300 = 33.99
Service Charge=2/100 * 300 = 6
Net Amount = Total Commission – Total Deduction
= 300 - (33.99 + 6)08/14/13

11. Mem
ber
Left
Coun
t
Right
Count
Total
Pair
Binary
Pair
Amoun
t
CF TDS Servic
e
Charg
e
Net
Amou
nt
U 3 1 1(2:1) 300 1:0 33.99 6 260.0
1
A 1 1 0 0 1:1 0 0 0
B 0 0 0:0 0 0 0 0 0
C 0 0 0:0 0 0 0 0 0
D 0 0 0:0 0 0 0 0 0

12. Step 2: Joining Date of Members: 02/07/10
BA
U
DC E F
G H I J
K
B is sponsor for E and F.
C is sponsor for G and H.
D is sponsor for I and J.
J is sponsor for K who joined at
right side of J.
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13. Calculation for second payout (02/07/2010 to 02/07/2010
Member New Left
Count
New
Right
Count
BF Total
Pair
Binary
Pair
Amount
CF TDS Service
Charge
Net
Amount
U 5 2 1:0 2(1:1,1:1
)
400 4:0 45.32 8 346.68
A 2 3 1:1 1(1:2)2(1
:1)
700 0 79.31 14 606.69
B 1 1 0:0 0 0 1:1 0 0 0
C 1 1 0:0 0 0 1:1 0 0 0
D 1 2 0:0 1(1:2) 300 0 33.99 6 260.01
E 0 0 0:0 0 0 0 0 0 0
F 0 0 0:0 0 0 0 0 0 0
G 0 0 0:0 0 0 0 0 0 0
H 0 0 0:0 0 0 0 0 0 0
I 0 0 0:0 0 0 0 0 0 0
J 0 1 0:0 0 0 0:1 0 0 0
K 0 0 0:0 0 0 0 0 0 0

14. Payout Details for Member U:
Payout No. Total Commission Net Amount
1 300 260.01
2 400 346.68
Cummulative Earning
606.69
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15. Thank You
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