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.
A binary MLM distribution strategy resembles a binary tree. A distributor would bring in two new members (Frontline distributors). These two new distributors would then engage two more distributors, and so forth.
The binary tree consists of 2 sub-trees, one is referred to as Power leg and while the second subtree is called the Weak leg.
As the new distributors sign up, they will be automatically placed in the distributor’s power leg. The power leg structure will have automatic placement of new distributors. As the number of front line distributors is limited to 2, any new sponsors would be placed in the distributor’s downline power leg (Spillover).
Weak Leg does not support spillover. All the distributors in the profit leg are personally hired( or sponsored) by their immediate distributor As the new distributors sign up, they will be automatically placed in the distributor’s power leg.
Binary MLM Plan Work : The new members sponsored by distributors are added either on the left leg or right leg. Upon adding two new members on either side of the subtree, a binary tree gets formed. All the new members referred after forming a binary tree gets spilled to the downlines.
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.
Structure 1:-The Sponsor & the Parent of downlines are the same :
If a distributor X sponsors A and If A sponsors a new member B to the left position of A in the binary network, then B is the direct downline of A. If again A referred a new member C, then it is added to the right position of A since it was the vacant position.
Now B, C are the direct downlines of A and the binary of A is formed to get the binary commission. A is the sponsor as well as the parent of B, C.
Structure 2: The Sponsor and the Parent of the downline are different.
Here distributer X sponsors A and Y, where Y is placed under the right position of A and now A sponsors new member B, where B is placed under the left position of A .However, B wasn’t added on the direct right leg because it was already acquired by distributor Y sponsored by X .since there is no vacant position at the left leg of A.
Here the parent of Y is A and the sponsor of Y is X.
here the sponsor and the parent are different for the downline Y. The binary of A is formed from its own effort and the upline’s (X) effort by spilling over the member Y.
Structure 3: Spillover without completely forming the binary .
Here distributer X sponsors two new members A and B, where A is placed under the left leg of X And B is placed under the right leg of X and binary of X is formed . Now distributer A sponsors new member C to the right leg as the left leg of A is filled by the new member Y, who is sponsored again by X. X also sponsors Z and places to the right of B. Here Y, Z is spillover and placed under the downlines of X i.e. A and B . Y is placed under the left downline of X i.e. A and Z is placed under the right downline of X i.e. B When you look into the picture, it is understood that the two spillovers occurred on two sides of X without completely forming the binary on either side.
Structure 4 :Sponsoring only to the left leg of the binary structure .
Here distributer A sponsors two new members B and C. B is placed under the direct left leg position of A, and C is placed to the direct left leg position of B. here the sponsor of c is distributer A and the parent of C is distributer B. here C is the spillover which is placed to the extreme left.
Structure 5 : Normal spillover in binary structure
When the direct left and the right legs get complete and, the next new member sponsored will be placed under the next level as spillover. This is called normal spillover.
When the distributor X sponsors new members A and B, the binary structure of X is completed, and if X again sponsors the new members Y and Z, they will be placed under the next level as normal spillovers.in this structure Y, Z both members placed under the next level as normal spillovers.
Binary Multi-Level Marketing Plan eCommerce Software is a web application that integrate with the e-Commerce module and helps to manage binary MLM networks.
The binary comp plan in network marketing provides the following benefits.
Depending on whether the distributor prefers left or right leaking, the distributors become active as they must balance the tree for compensations.
Binary plan, distributors may add members to an unlimited number of tiers and make a big revenue.
The binary strategy provides the potential for rapid corporate expansion.
New members are spilled over to the infinite downline levels after finishing the first level.
Unpaid sales volume from the current binary payout cycle is carried forward to the next binary payout cycle.