Binary MLM Plan is the most actively and widely used Compensation Plan. It follows a two-legged (left leg/right leg) structure and offers fast-paced growth opportunities. As the name indicates, a binary compensation plan works off with the power of two. Two is the exact number of direct downlines any sponsor can have. From the two subtrees generated, if one member gets the benefits from one subtree then it is considered as the power leg/profit leg and the other as the weak leg.

How does the Binary MLM Plan work?

  • The binary MLM plan is based on the matrix
  • You can only enroll or recruit 2 people as your first level downline
  • The profit level is based on the activity of downline members
  • If one of your legs is inactive, you won't be able to generate any significant income
  • If you recruit more than 2 members, they will be added to the next available member in the Power Leg
  • This mechanism can be referred to as spillover.
  • In the case of the winning leg, there will be no spillovers.
  • The profit leg will only grow with individually sponsored downlines


Bonuses in Binary MLM Plan

Generally, there are three types of Bonuses paid in Binary MLM Compensation Plan:

  1. Introducer/ Sponsor Bonus / Direct Referral Commission
  2. Pairing Bonus
  3. Matching Bonus

Direct Referral Commission

This bonus can also be referred to as the profit each user gains by recruiting new members directly as a downline network. The direct referral commission percentage is based on the package your downlines choose.

Pairing Bonus

This bonus is paid after completing the Binary tree and based on the sales of downline members. Pairing Bonus is calculated as a point system for every member signed in or it can be a total value per person/as a percentage of what a new person signed up for.

Matching Bonus

Bonus earned for recruiting new members in the downline network is known as matching bonus. This bonus can be earned up to ‘n’ generations depending on the structure of the binary compensation plan chosen by the company.

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Key Benefits Of Binary Plan MLM


Unlimited Depth

You can easily build your network in any depth as per your requirement and every member in the upline is guaranteed to gain profit from the successful sales.


Fast Expansion

There is a high tendency to expand your network through this Binary plan since each member needs to recruit only two new members.



Here you will get an additional earning from the spill of your upline. Getting a new member shared between each ancestor in the power legs allows benefit .


Volume Based Structure

Distributors who bring sales are guaranteed to be paid more for them.Thus making the distributors generate more volumes.

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