Binary Plan
Two-Legged MLM Compensation Structure
What is Binary Plan?
The Binary plan is a compensation structure used in network marketing where member build two "legs" or teams under them, one left and one right, it creates a two-legged structure that promotes balanced team building. Each member recruits two people directly under them, which normally called it as placement.
How to calculate Pairing Bonus?
Pairing bonus is one the common bonus in Binary Plan. Earnings are based on the sales volume (PV) generated by the weaker (lower-performing) leg. For example, if the left leg generates 100pv and the right leg 500pv, pairing bonus is calculated on the 100pv. The balance carry forward for left leg will be 0 and right leg will be 400pv. The accumulated left and right pv normally will use it for ranking purpose.
How to calculate Matching Bonus?
Matching bonus is based on pairing bonus. For example, if someone on your sponsor tree got the pairing bonus, normally up to 3 levels will get the matching bonus.
How to calculate Placement Bonus?
Placement bonus is based on placement tree (binary tree). Placement bonus normally up 10 levels. It means whenever someone registered and is placed within 10 levels, you will get some small percentage for this placement bonus.
Why Companies and Distributors Love the Binary Plan?
Fast growth potential – Only two direct recruits are needed to complete the first level.
Teamwork incentive – Spillover from upline efforts helps newer members build volume quickly.
Rewards are usually calculated on balanced volume between the two legs.
Simple to explain – Easy for new recruits to understand, which aids recruitment.