Commission Based On Weak Leg
In a Binary MLM Plan formula, a commission is calculated based on whichever side a team or leg has the least amount of volume. The percentage will be calculated of that least amount of volume and every member will get paid based on that, so the profit margin depends on how your downline team members make sales.
For example, if the left leg earns 500 points and the right 1000 points. Then, the commission will be calculated as 10% of the least amount of volume that is on the left leg, so, 10% of 500. And the right leg will have a carry point for the next commission.
A fully featured and efficient Binary MLM Software with a binary compensation plan calculator or MLM binary plan calculator helps to manage all these commission calculations.
- Therefore, the commission earned by A from B and C = 10% of 200 = 20 USD.
- Therefore, the total commission earned by A = 10+20 = 30 USD.
- Commission with respect to B
- B recruits D on the left and E on the right.
- D earns 100 PV while E earns 200 P.V.
- Since the left leg is the weaker leg , 100 PV from the left and right is matched. The remaining 100 PV from the right is carried forwarded to the right leg of B.
- Commission earned by B = 10% of 100 = 10 USD
- Therefore, the total commission earned by B = 10 USD.
- C recruits F on the left leg and G on the right leg . Both F and G generate 100 PV each.
- For C, since P.V on both the legs are equal, 100 PV on left leg is matched with 100 P.V on right leg and there is no carry forward in this case.
- Commission earned by C = 10% of 100 = 10 USD.
- Therefore, the total commission earned by C = 10 USD.
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