All Binary pay plans are fixed width in nature, limited to no more than two frontline individuals for any income center. One of the two frontline is referred to as the head of the “Left Team” and the other the head of the “Right Team”.

Sales volume is then accumulated between each team to unlimited depth. While the methods of qualifying to accumulate volume can vary slightly from pay plan to pay plan, most Binary compensation plans will pay on accumulated volume in one of the three following fashions:

1. 1/3 – 2/3 Plan; this plan type calls for a prescribed number of sales to be present in total between both teams, with a minimum of 1/3 of the required volume present in one of the teams. E.g. 9 total sales with a minimum of 3 in one team pays a $50 commission.
    
2. 2. 50 – 50 Plan; this plan type also calls for a prescribed number of sales to be present in total between both teams, however it looks for an equal number of sales between teams. E.g. 10 total sales with a minimum of 5 in each team pays a $50 commission.
    
3. 3. Weak Leg %; this variation of the Binary pays commissions on a percentage of the sales in the weak leg when a prescribed number of total sales are present between both teams. E.g. have 10 total sales between both teams and you will receive 10% of the sales in your weakest leg (Note: weakest leg being the one with the fewest sales present).

Many Binaries also break payment of commissions down into what are referred to as “Steps” and “Cycles”. The term Cycle refers to the payout of a full commission amount. The term Step refers to increments of Cycle payout intended to get money into a distributor’s hands as quickly as possible.

As an example, a company may have a $300 Cycle that pays in three Steps. When 1/3 of the necessary sales have been gathered a $100 payout is issued. When 2/3 of the necessary sales have been gathered a second $100 payout is generated and the final $100 is paid when the remaining 1/3 of the required sales is collected.

Once sales are paid upon, a Cycle has been completed and those sales are removed from a distributor’s Left and Right team counts.

For additional information on Binary pay plans, please contact MultiSoft at 239 945-6433 or sales@multisoft.com .