How does commission calculation work

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In a binary MLM plan, bonus calculation depends on sales volume. To receive commissions, the turnover must be evenly distributed between the two “branches” of your structure. Usually, the proportions are divided as 40% to 60%, but the most democratic companies allow a ratio of 30% to 70%. If the sales proportions are incorrect, you lose commissions from the entire turnover of the structure.


The binary commission is calculated at 5-10% of the smallest sales volume of the weak branch. The company's marketing may have a rule that bonuses are paid only starting with a minimum student data turnover (for example, $100). If people in the structure make a turnover less than the prescribed amount, bonuses are not awarded.

For convenience, let's imagine that all members of the structure make monthly purchases for $100. The group turnover of the network of 23 people is $2,300. And if the company paid 5% of $2,300, the leader's income would be $115. But the binary conditions assume that the profit is received from sales of the weak branch, where there are 10 people. Their group turnover is $1,000, and your income = 5% of $1,000 = $50.

The correct calculation of the amount of compensation, taking into account the rules of your company, can be done in the binary calculator.



In pure binary marketing, four types of bonuses are often used , which increase the stability of the network structure and activate teams.

1. Referral bonus (sponsor bonus, joining bonus) - the profit that the user receives by attracting new members to the company.

2. Commissions for sales volume are calculated based on the turnover of the branch that showed the lowest result.