In direct selling the two common compensation plans are a binary compensation plan and a hybrid compensation plan. Lets know the difference of these two models in certain aspects:
Structure:
Binary: It is a simple two-leg model one leg placed left and other one in right. swhere The two legs must eventually be in balance with each other.
Hybrid: It has a flexible structure combining two or more compensation plans. This may have more than one compensation plan and also multiple earning paths.
Ease of Implementation
Binary: Easier to implement because of its simple structure
Hybrid: More complicated to set up because of combining various plans
Payout Structure
Binary: Payout is based on the weaker leg performance for maintaining and encouraging balanced growth.
Hybrid: Payout varies depending on the combination of plans. Includes direct bonuses, matching bonuses, team commissions, etc.
Hosted on Acast. See acast.com/privacy for more information.
