Sponsor or Referral income is income earned by referring someone in the system. For every direct referral, Networker gets paid by Sponsor income. Normally Sponsor or Referral income is Fixed amount of percentage of the package amount. Majority of company has condition of 2 sponsor to earn other income in Binary Plan.
In a multi-level marketing (MLM) company, sponsor income refers to the money you earn from recruiting new members into the business. These new recruits are placed under you in a network, often called your downline.
There are two main ways sponsors can earn income from their downline:
Referral bonus: This is a one-time payment you receive when someone joins your downline, typically a percentage of the signup fee they pay.
Here are some additional things to know about sponsor income:
It is a key element of the MLM business model. Success in MLM often relies heavily on building a large downline that generates sales.
Sponsor income can be a significant source of income for some MLM participants, but it's important to be realistic. Many MLM companies have complex compensation plans that make it difficult for most participants to earn a substantial income.
Some critics of MLM argue that the emphasis on recruitment can create a pyramid scheme where the main focus is on signing up new members rather than selling products.
If you're considering joining an MLM company, it's important to research the company's compensation plan carefully and understand how much money you can realistically expect to make. You should also be aware of the potential risks involved, such as the high cost of buying products to sell and the difficulty of recruiting new members.
Direct Income : This is Sponsor income, when user ‘U’ brings someone to their downline, user ‘U’ will get money for this sponsor. This is called Direct Income or Sponsor Income. This income is basically two types, one is percentage and another is flat income.
If company sets from admin section that Direct Income or Sponsor Income will be 10% of joining package, when someone purchase this joining package for join this company, his Sponsor will get 10% payment of joining package price, package BV(Business Value), package PV(Point Value) whichever according to company rules.
Another way, If a company sets from the admin section that Direct Income or Sponsor Income will be $10 per joining. When someone joins this company, his Sponsor will get $10 to his/her wallet.
