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.



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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

This is the promotional bonus to users,mainly rank bonus calculated referral count,left users and right users count or the total number of members under a specific rank on binary tree. Here, the Sponsor and parent of these two downlines are the same and are A. After appointing B and C as his downline Binary of A will be ready to get a commission.

Different Sponsor & Parent

In this situation, X introduced A and C and placed C as A’s downline. Then A introduced a new downline B as his left leg. Here, A is the parent and sponsor to B For C, A is the parent and X is the sponsor. Because A is the direct upline of C but sponsored by X

Sponsoring Only To The Left

In this situation, X sponsors A and B. A is placed in the direct left leg of X and B is placed under the left leg of A. Here, B is placed on the extreme left leg of X and is the spillover.

Typical Spillover In Binary Plan

When the two legs of the distributor are filled, he can sponsor downlines in the next level as spillover. It is simply called Normal or Typical Spillover. Here, Y and Z are the Typical Spillovers of X.

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.


Frequently Asked Questions

1What is MLM binary plan?
MLM Binary plan is a plan structure which is used in Multi Level Marketing, that is very simple and popular among MLM Plans. In this plan, each joiner/member is positioned in the binary tree structure. The right sub-tree and left sub-tree concept is the members downline connections.
2What is binary pay?
In the binary plan when a representative reaches a certain number of product sales they're paid a percentage of the volume. A company may have it set up where if you have 10 customers on your right side and 10 customers on your left side they may pay you the percentage of the volume.
3Is binary plan legal in India?
Yes, Binary Plan in MLM is legal in India and it is one of the easiest and most implemented plans in MLM business
4What is PV MLM?
Payout management with point system (PV) in MLM software
5What is binary investment?
A binary option is a financial product where the buyer receives a payout or loses their investment, based on if the option expires in the money
6How many types of MLM plans are there?
In MLM and Network Marketing there are Seven main types of compensation plans. Binary, Unilevel, Donation, Board, Partyplan, Giftplan and Matrix type plans.