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MLM Binary Plan

Home MLM Binary Plan
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Features of binary MLM

  • Easy Customization
  • E-Commerce
  • Multi-Language
  • Multi-Currency
  • Binary Compensation Calculation

What is binary MLM Software?

Binary MLM Software is a powerful web-based application designed to manage and automate binary network marketing structures. It simplifies complex MLM operations by efficiently tracking downlines, incomes, and expenditures, reducing the need for manual work by MLM companies. This software not only ensures accuracy and transparency but also boosts productivity by providing real-time insights and advanced reporting. Whether you are a startup or a well-established MLM company, Binary MLM Software helps maximize efficiency, streamline workflows, and accelerate growth.

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MLM binary plan

The MLM Binary Plan is one of the most widely used and simplest structures in Multi-Level Marketing (MLM). In this plan, each new member is placed in a binary tree structure, where they build two downlines – a left sub-tree and a right sub-tree. Every member is responsible for maintaining both sides, creating a balanced network.

Introduced in the late 1980s, the Binary MLM Plan quickly gained popularity due to its simplicity, transparency, and fast growth potential. By the 21st century, it had become one of the most dominant MLM plans worldwide, helping businesses achieve scalability and stability.

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MLM binary plan structure

The MLM Binary Plan is one of the most widely used structures in network marketing because of its simplicity and rapid growth potential. In this plan, each member is positioned in a binary tree structure with two primary downlines, which form the foundation of the network. These downlines are often referred to by different names depending on the terminology used by the MLM company. The three most common names for the legs are:

  • Right leg/Left leg : The two main branches of the network where members are placed.
  • Outside leg/Inside leg : The stronger leg that grows faster and contributes more to commissions.
  • Power leg/Profit leg : Alternative terms used to describe the left and right branches.
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A unique feature of the binary plan is that each member only needs to recruit two direct members to begin building their network. Additional recruits are placed in available nodes within the binary tree, a process called spillover, which allows uplines to benefit from the recruitment efforts of others. This encourages teamwork and shared growth while generating income through commissions, bonuses, and incentives.

Another advantage of this structure is its ability to support multiple business centers, enabling ambitious members to expand their network and maximize earnings. Because of its balanced structure, simplicity, and profit-sharing opportunities, the Binary MLM Plan remains one of the most popular and effective MLM compensation models worldwide.

Compensations in binary plan

Compensations are received based on the distributor performance or by achieving the criteria set by binary plan companies.

Profit leg

Every Binary plan structure will have two branches, The Left & Right.

Whichever of this branch makes more money, that is the profit leg.

Power leg

Whether it right or left, the leg with less members will be the profit leg. Profit leg will not grow beyond the power leg.

Profits

When the power leg and profit leg reaches the same depth, the maximum profit will be available.

Binary bonus

A percentage of bonus paid based on the weak leg sales volume.

Example: In a binary network, the left leg made a sales volume of $100 and the right leg of $500.

Pairing bonus

Qualified distributors receive a bonus if they achieve balanced sales volume in each leg.

Example: Binary network has made 3300 sales volume ‘on the left leg’ and 3333 SV ‘on the right leg’.

Matching bonus

The sponsor receives a percentage of bonuses achieved by the downline members.

Example: Distributor X sponsors Y & Z and added them in the binary tree as direct downlines.

Direct referral bonus

Bonus received for referring new members into the binary tree.

Example: The distributor refers two members and added them to the referral tree. Now the distributor receives a direct referral bonus for sponsoring two members in the binary tree.

Return on investment (ROI)

Distributors receive a fixed amount or percentage of the investment they made in the binary business.

Example: A distributor joins the binary network and invests $20,000 for their binary system. During daily/weekly/monthly they get a percentage of their investment as a return. A Return On Investment (ROI) rate is set by the business admin and subject to vary.

Custom bonus

Most of the MLM companies develop their own custom bonuses to motivate and attract more people into the network.

Profit leg

Every Binary plan structure will have two branches, The Left & Right.

Whichever of this branch makes more money, that is the profit leg.

Power leg

Whether it right or left, the leg with less members will be the profit leg. Profit leg will not grow beyond the power leg.

Profits

When the power leg and profit leg reaches the same depth, the maximum profit will be available.

Binary bonus

A percentage of bonus paid based on the weak leg sales volume.

Example: In a binary network, the left leg made a sales volume of $100 and the right leg of $500.

Pairing bonus

Qualified distributors receive a bonus if they achieve balanced sales volume in each leg.

Example: Binary network has made 3300 sales volume ‘on the left leg’ and 3333 SV ‘on the right leg’.

Matching bonus

The sponsor receives a percentage of bonuses achieved by the downline members.

Example: Distributor X sponsors Y & Z and added them in the binary tree as direct downlines.

Direct referral bonus

Bonus received for referring new members into the binary tree.

Example: The distributor refers two members and added them to the referral tree. Now the distributor receives a direct referral bonus for sponsoring two members in the binary tree.

Return on investment (ROI)

Distributors receive a fixed amount or percentage of the investment they made in the binary business.

Example: A distributor joins the binary network and invests $20,000 for their binary system. During daily/weekly/monthly they get a percentage of their investment as a return. A Return On Investment (ROI) rate is set by the business admin and subject to vary.

Custom bonus

Most of the MLM companies develop their own custom bonuses to motivate and attract more people into the network.

Advantages/Benefits of Binary MLM Plan

The advantages of the binary plan make it a comfortable MLM plan. Its benefits may include

Spillover

Getting a new member shared between all ancestors in the power leg allows mutually benefit and encourages everyone to attempt to recruit new members and make way to extend the binary plan.

Unlimited depth

You can build your network in any depth you want and every member in the upline is guaranteed to gain profit from successful sales.

Fast expansion

You can build your network in any depth you want and every member in the upline is guaranteed to gain profit from successful sales.

Quick growth

Binary plan offers quick business growth opportunities. Fast expansion when each member recruits a new member.

Group work

With left leg or right spilling preferences, the distributors become active as they have to balance the tree for compensations.

Carry forward

Unpaid sales volume (SV) after present binary payout cycle is carried forward to the next binary payout cycle.

Volume driven plan

Binary plan ensures to pay more to the distributors who bring the orders.

Long-chained network

You can build a network chain and every member in the upline is guaranteed to gain profit.

Multiple business centers

The binary tree is a recursive data structure so it allows multiple business centers for the MLM.