What is the binary MLM Plan ?

The compensation plans differ in their structures, and the structure of the Binary compensation plan has been a huge hit primarily because it has helped various companies reach high success levels. Each distributor in a binary compensation plan has a limit of not having more than two distributors in their first level of sales. It is supposed to consist of two legs (right and left), and every distributor has a subtree, so a binary tree is formed.

Binary mlm plan working

How does the binary MLM Plan Works ?

Case 1: Distributor X sponsors A, and distributor A then sponsors a new member B. B gets added to the left position or leg of A on the binary tree.

Distributor B is the new member sponsored by A and he is the direct downline member. Distributor A then adds another member C to his right leg.

binary left leg spillover
(Binary left leg spillover)
binary tree of X
(Binary tree of X)

The binary tree of distributor A is formed and he gets commissions. Dont forget one important factor, distributor C was added to the right because he chose that position as it was vacant. Here, distributor A is the sponsor as well as the ‘parent’ of B & C.

Case 2: Distributor A is sponsored by distributor X. Distributor A then sponsors a new member, B. However, B wasn't added on the direct left leg because it was already acquired by distributor Y sponsored by X.

Here, distributor Y got spilled over to the next vacant position i.e. on the left leg of A. The sponsor of Y is X but the parent is A.

binary plan structure
(Binary plan structure)

Binary Compensation Structure

hero bg

Recognized As Best

Recognized by Google
Recognized by Capterra
Recognized by Clutch
Recognized by SoftwareAdvice
Recognized by GetApp