What is a Binary Plan?
A binary MLM plan is defined as a compensation plan for each distributor that has two legs (left and right) or subtrees.
Subtrees are used to construct a binary tree. New members are then divided into down lines or the next company level. This plan is the structure of binary MLM software.
Binary Plan is the simplest and most popular among all other MLM plans. This plan was introduced in late 1980 and has become the most popular MLM plan.
By attaining a particular quantity of sales volume, binary fees can be collected. The binary plan has no depth restrictions. Each sale will be made in increments based on the particular quantity of the required sales volume.
The extent of commission sales made on the lines between you and that individual is the limiting element for collecting a commission from that individual, not the depth at which it is located. Each position is separated into left and right sides, with the binary plan yielding a reward based on a previously defined volume match. There are no minimum sales volume limitations for groups.
The branches of a binary plan must be balanced. Every plan has a daily or weekly cap. It is the final key that defines the maximum distribution payments and was previously calculated by the program.
Now, let’s look at how we calculate commission.
We offer three kinds of commission to binary plans, that is referral/ sponsor bonus, binary/ pairing bonus, and a rank bonus.
Binary In MLM
MLM Plan simply refers to a framework that lays the groundwork for MLM or Network Marketing. In other words, it is the method through which you will conduct MLM activities.
They have a wide range of MLM Plan options to choose from. The person who comes to Network Marketing is free to choose an MLM Plan that is acceptable for him.
The very common plan in any Network Marketing is Binary Plan. Let’s know about the Binary Plan in detail.
New distributor-sponsored members are added to either the left or right leg. A binary tree is built by adding two additional members on either side of the subtree.
After forming a binary tree, all new members referred to as the downlines are spilled. The following cases will show how the downlines are spilled.
The following are some scenarios that form a binary structure;
The binary compensation structure is essentially an infinite-depth two-width matrix MLM design.
In a Binary structure, only two people can join in the first level but the level can be unlimited. That means each person can only have two downlines, left and right.
It shows the relationship between the sponsor, parent, and downlines.
Sponsor: The sponsor is the person who introduced you to a network marketing company that you are going to join.
Parent: The parent is the direct upline of the newly admitted member in a binary tree.
Downline: Downline is the distributor who is introduced by the sponsor.
Sponsor And Parent Are Same
Different Sponsor & Parent
Sponsoring Only To The Left
Typical Spillover In Binary Plan
Types Of Spillover
- Spillover To Multi-Position
Depending on the package bought by the distributor, he can offer multi-position spillover in a binary tree. This is done when the first three positions are filled and the next immediate position will be filled through spillover.
- Extreme End Spilling
Sometimes spilling can be done to the extreme end such as extreme right or left. This method is preferred by those companies which engage in the sales process. This is done to get commission by balancing the pair with sales volume.
- Spilling On Weaker Leg
As per this method, newly admitted members are placed under the weak leg of the binary tree. Here, a weak leg means a leg that has the lowest sales volume compared to the other leg. It will help to increase sales volume in the weak leg.
- Balanced Ratio Spilling
The binary tree is balanced with a 1:1 ratio according to the spilling preference. Both right and left combinations will receive the new members.