MLM Glossary – B

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Binary:

A type of 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 distributor’s front-line. This spillover is one of the most attractive features to new distributors as their upline is consistently placing new distributors in their shared leg. The primary limitation to the binary compensation plan is that distributors must “balance” their two legs to receive maximum commissions. Balancing legs typically requires that the number of sales from one downline leg constitute no more than a specified percentage of the distributor’s total sales. Distributors will often refer to their teams as their strong leg and weak leg based on its current production.

Bonus:

An amount of money added to typical commission as a reward for good performance. Many multi-level marketing companies offer bonuses such as electronics, cars, vacations, and even houses for reaching predetermined goals of building their mlm business. The specific qualifications for obtaining a bonus will be detailed within a company’s compensation plan.

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