Understanding Binary and Unilevel Compensation Plans: A Complete Guide
from Epixel Podcast
Binary model or the two-leg model calls upon the creation of two "legs," and earnings are dependent on the worst performing leg, so all participants require nurturing both legs equally. Obtaining reports on those legs and balancing them can become difficult and expensive. Unilevel model permits unlimited recruiting on the same level without the need for balancing legs, allowing branches to reduce administrative expense while expanding more quickly. Binary, while able to generate strong prolonged results if managed well, has heavier demands on time, resources and coordination. The unilevel model will provide the same level of simplicity or basic stable structure but lower barriers to growth and less risk for new or smaller organizations.
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