What is Binary MLM Plan?
Binary Multi Level Marketing Plan includes a two legged structure where in a parent Node has two sub nodes where each new distributor or members is placed in either left or right sub-tree. One sub-tree is known as a Power Leg or Profit Leg while the second sub-tree is a Profit Leg or a weak leg.. It is one of the basic Binary MLM plan which is required by all the MLM organizations be it small or large. The binary MLM plan helps admin managing users or sub nodes in a binary network to keep record of their income, expenses etc.
Binary MLM Plan
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.
Join Commissions
MLM companies create join commission to encourage their mlm members and attract more new members to join binary network. this commission amount credit in user’s account at the time of joining the network .
Pair Commission
Pair commission or binary commission. the distributor or user sponsors new member to balances both legs with active members. when the user balance both legs with active leg, user will be able to achieve pair commission. The commission is calculated based on percentage the amount the company has already defined.
Direct Referral Commission
The referral commission is also referred as sponsor commission / leader bonus or the introducer bonus is the benefit gotten by a user for introducing new members to the downline network. The commission is calculated based on the percentage or fixed of the amount the company has already predefined. The commissioned amount is automatically credited to the user’s account.