Binary MLM Compensation Plan is a well known network marketing strategy. The jury's opinion on the MLM Binary plan has been evenly divided. Some distributors love the unique rules and techniques of this plan, while others prefer greater flexibility. Binary plans can be legitimate products or services in a comparison of binary schemes vs. pyramid schemes.

Binary MLM plans are easy to understand and make it easier for new recruits to join the network. In place of multiple-level representatives being paid a percentage of their sales, they will be compensated according to the volume of sales generated by each leg. In the binary MLM plan formula, only the "pay" leg (lower-earning) is used for calculating MLM commissions.

Maximize sales performance. Members can recruit new members and balance spillover strategically. Growth potential is high. It is easy for new recruits to get involved, understand and earn.

The downline team's activity is the only thing that determines profit margin. It can be difficult to keep the legs in balance and produce high. Recruitment could be difficult if the distance between legs becomes too large.

You need to understand a few terms before we look at MLM's binary plans. Sponsor is the distributor that introduces the member into the binary MLM plan. In binary MLM, the parent is the distributor who introduces the new member to the network.

The company can choose how to spillover, but there is a standard framework. Normally new recruits spilled are at the left extreme and the new spilled join to the right.