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Description

What is a Binary MLM Plan

A Binary MLM Plan formed a Two Legged (Left leg, Right Leg) structure in Multi-Level Marketing where each new distributor or member is placed on either left or right leg or subtree .One subtree is known as a Power Leg while the second subtree is a weak leg.

This process continues to unlimited levels or depths. Also, the plan is easy to understand and that helps distributors or member encourages or attract more people to join the network. Thus the recruitment or sales increase which also improves growth and business opportunities.

Would you like to automate your MLM business by adopting a binary MLM plan? Go ahead with Binary MLM software to automate the binary MLM compensation tedious calculations, manage payout, track sales and expenditure, wallet transactions, quick view of genealogy tree, and many more back office functions.

How Does Binary MLM Plan Work

The new members sponsored by distributors are added either on the left leg or right leg. Upon adding two new members on either side of the subtree, a binary tree gets formed.All the new members referred after forming a binary tree gets spilled to the downlines.

Note: Distributors become a part of the binary plan by purchasing an enrollment package. The enrollment package here means either a service or a list of products. The distributor buys the package and becomes a part of the binary MLM company .

Lets See Different Scenarios Of Forming A Binary MLM Structure

Before looking into the structure, try to understand the difference between a Sponsor and the Parent of a downline.

Sponsor: The sponsor is the person who introduced the new member to the binary network.

Parent: The distributor, who is the direct upline of the new member introduced to the binary network.

Structure 1:-The Sponsor & the Parent of downlines are the same :

If a distributor X sponsors A and If A sponsors a new member B to the left position of A in the binary network, then B is the direct downline of A. If again A referred a new member C, then it is added to the right position of A since it was the vacant position.
Now B, C are the direct downlines of A and the binary of A is formed to get the binary commission. A is the sponsor as well as the parent of B, C.

Structure 2: The Sponsor and the Parent of the downline are different.

Here distributer X sponsors A and Y, where Y is placed under the right position of A and now A sponsors new member B, where B is placed under the left position of A .However, B wasn’t added on the direct right leg because it was already acquired by distributor Y sponsored by X .since there is no vacant position at the left leg of A.
Here the parent of Y is A and the sponsor of Y is X.
here the sponsor and the parent are different for the downline Y. The binary of A is formed from its own effort and the upline’s (X) effort by spilling over the member Y.

Structure 3: Spillover without completely forming the binary .

Here distributer X sponsors two new members A and B, where A is placed under the left leg of X And B is placed under the right leg of X and binary of X is formed . Now distributer A sponsors new member C to the right leg as the left leg of A is filled by the new member Y, who is sponsored again by X. X also sponsors Z and places to the right of B. Here Y, Z is spillover and placed under the downlines of X i.e A and B . Y is placed under the left downline of X i.e A and Z is placed under the right downline of X i.e B When you look into the picture, it is understood that the two spillovers occurred on two sides of X without completely forming the binary on either side.

Structure 4 :Sponsoring only to the left leg of the binary structure .

Here distributer A sponsors two new members B and C. B is placed under the direct left leg position of A, and C is placed to the direct left leg position of B. here the sponsor of c is distributer A and the parent of C is distributer B. here C is the spillover which is placed to the extreme left.

Structure 4 : Normal spillover in binary structure

When the direct left and the right legs get complete and, the next new member sponsored will be placed under the next level as spillover.This is called normal spillover.
When the distributor X sponsors new members A and B, the binary structure of X is completed, and if X again sponsors the new members Y and Z, they will be placed under the next level as normal spillovers.in this structure Y, Z both members placed under the next level as normal spillovers.

Binary Commissions

Join Commissions :

MLM companies create join commission to encourage thair mlm members and attract more new membrs to join binary network. this commission amount credit in user’s account at the time of joining the network .

Direct Referral Commission:

MLM companies create direct referral commission to encourage thair mlm members and attract more new membrs to join binary network. this commission amount credit in distributers account when they add new members in binary network.
The sponsor bonus otherwise known as the referral bonus or the introducer bonus is the benefit gotten by a user for recruiting new members to the downline network. The bonus is calculated based on the percentage of the amount the company has already predefined. The commissioned amount is automatically credited to the user’s e-wallet.

Pair Commission :

MLM companies create direct pair commission to encourage thair mlm members and attract more new membrs to join binary network. this commission amount credit in distributers account when they add new members in binary network.