Binary MLM Software plan

   

Binary MLM, also known as Binary Multi-Level Marketing, is a compensation plan used by some network marketing companies. In a binary MLM structure, distributors are organized into two legs or teams: a left leg and a right leg. Each distributor is allowed to recruit only two frontline distributors, one in each leg. Any additional recruits are placed under existing distributors in their respective legs, creating a binary tree structure.

 

Binary Structure:

As mentioned, the organization is built with two legs, usually referred to as the "Power Leg" and the "Profit Leg." This structure promotes teamwork and encourages distributors to support each other to build their respective legs.

 

Compensation Plan:

Binary MLMs typically offer various ways to earn income, including commissions based on product sales, bonuses for building and maintaining balanced legs, and additional incentives for achieving specific targets or ranks within the organization.

 

Balanced Leg Requirements:

One characteristic of binary MLMs is the requirement to maintain a balanced leg volume. This means that distributors must ensure that the sales volume or recruitment efforts in both legs are relatively equal to maximize earnings. Typically, commissions are based on the weaker leg's volume or the volume of the lesser-performing leg.

 

Spillover and Overflow:

Spillover occurs when a distributor recruits more than two frontline distributors and places the excess recruits under existing distributors in their organization. Overflow happens when a distributor's leg becomes full, and new recruits are placed under their upline, helping to build their organization.

 

Binary Placement:

In a binary MLM, the placement of new recruits in the binary tree structure is important. Some binary MLMs allow distributors to personally choose where to place new recruits, while others follow a specific placement system determined by the company or compensation plan rules.