BINARY COMPENSATION PLAN

A binary compensation plan is one in which an Affiliate must develop only two sales teams. Most visual presentations of a compensation plan use circles to represent the Tracking Centers. Looking at a chart of the genealogy, one team would be on the left and one team on the right. In the following example, Rex is an Affiliate in JavaFit and sponsors Dave on his left and Scott on his right:

	Rex
Dave		Scott

 

 

In turn, Dave sponsors Billy and Joan while Scott sponsors Norm:

		Rex
	Dave		Scott
Billy		Joan		Norm

 

 

All of the sales volume from Dave and his downline would be the left side volume for Rex. All of the sales from Scott down would be the right side volume for Rex.

Bonuses in the binary plan are based on a total sales volume of $600 with at least $200 on one side (it doesn’t matter which side and the sides can change from one time to the next). This is referred to as a 2/3 – 1/3 payout. That means that 2/3 of the sales volume ($400) is on one side and 1/3 ($200) is on the other. When this happens, a pay cycle is triggered. This is normally referred to as “cycling.” The JavaFit plan pays $45 per cycle. The number of cycles per Tracking Center is computed each night at midnight. All of the cycles for the week are added up on Friday at midnight. The bonus is paid on the following Friday. There is a cap to the number of cycles which can be paid. No Tracking Center will be paid more than $25,000 per week from the binary. Other bonuses do not count against this cap. If a Tracking Center is “capped” four weeks in a row, a new Tracking Center will be created directly above the existing Tracking Center. When this occurs, the Affiliate will have a great deal of volume each week under one leg already. Thus, only one new leg must be built for the new Tracking Center to earn bonuses while the old Tracking Center continues to earn.

NOTE: It is the sincere desire of the JavaFit corporate staff that as many Affiliates as possible face this “capping” challenge in their Tracking Centers.

As you can imagine, a perfect world does not exist. It will be a rare case when both sales teams contribute exactly 1/3 and 2/3 to the sales volume. In most cases, there will be excess volume on the 2/3 side. For example, an Affiliate might have $200 in sales volume one side and $1,400 on the other. In this case, the extra $1,000 in sales volume will be “banked” or saved for future use. The volume does not go away. It is not “flushed” (which makes the JavaFit plan a non-flushing binary).

The banked sales volume is saved as long as the Affiliate is active. It will only be flushed if the Affiliate does not create $40 of PV in a one month period.

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