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.

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 wasnt 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