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Direct Sales: How is The maximum pairing bonus in an MLM binary plan determined?
SR
SR
Sajin Rajan, Co-founder & Director at Epixel MLM Software answered:

Pairing bonus in a binary MLM plan is calculated based on distributor sales volume. Distributors receive pairing bonus on achieving balanced sales volume on each leg. This again depends on the compensation plan and payout structure of various MLM companies. Most MLM companies consider weaker leg sales volume to calculate pairing bonus for its distributors. Companies may also choose to pay commissions based on sales or pairing ratios. The common pairing or sales ratio in the binary MLM plan are

1:1

1:2 or 2:1

3:2 or 2:3

I think demonstrating this with an example can help you understand the concept better.

Consider a binary network that has accumulated 1100 sales volume on the left leg and 1111 sales volume on the right leg. Let us also consider that the company has adopted a pairing bonus that is set to a 1:1 ratio with a commission percentage of 10% for every 100 sales volume and the payout cycle set on a monthly basis,

The distributor will receive 11*10=$110 as commission as there are eleven 100 sales volume pairs in the left leg. The remaining 11 sales volume is added to the right leg and carried forward to the next binary payout cycle.

In the instant pairing binary payout cycle, pairing bonus will be paid out once both the binary legs complete the 1:1 bonus ratio that is 100 sales volume in the right and left leg.

Hope this helps. If you need to know more about the binary MLM plan, its commissions and bonuses, this article (https://www.epixelmlmsoftware.com/binary-mlm-compensation-plan) might help.

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