What is Binary Multi-Level Marketing (Binary MLM) and how does it operate?

A lot of Networking marketing organizations employ a unique business model called binary MLM. Binary system MLM is centered on the number two, as the name implies. A binary MLM’s distribution scheme resembles a binary tree in appearance. Two new members are introduced by a distributor (Frontline distributors). After that, each of the two new distributors would recruit two other distributors, and so on.

 

The following is an example of a common Binary MLM distributor plan:

 binary system MLM

Plan Structure of a Binary Distributor

 

The MLM company’s distributor A would engage two Front Line Distributors, B and C, for the Binary plan. B and C would now hire D, E, F, and G as A’s downline distributors. The process would continue, with the addition of more distributors. As more distributors join, it has the potential to grow indefinitely. This is a matrix plan that is 2-by-infinity.

 

They may not always be on the same level as the people they sponsor. Because their first two jobs were filled or because they continue to sponsor people as they expand their sales organization, someone above you may have had to fill that position with someone they sponsored.

 

Spillover

 

Each distributor has only two frontline distributors in a binary MLM model. Assume A employs three distributors, B, C, and D. As his frontline distributors, he chooses B and C. D, who was hired by A, is no longer able to be his frontline distributor because the first two jobs have already been filled. He can put him below B or C if he wants to. As distributors continue to hire (or sponsor) new distributors, they may not reach the same level of success ( as front line distributors). Spillover is a term that describes this situation.

 

It’s also possible that neither of your sponsors will be your front-line distributors since a distributor above you may be forced to place a new distributor in that position as he continues to hire new distributors to expand his sales network.

 

Binary MLM’s Composition

 

The binary tree is divided into two sub-trees: PowerLeg and ProfitLeg.

 

Power leg

 

New distributors will be assigned to the distributor’s power leg as soon as they sign up. The placement of new distributors in the power leg structure will be automated. New sponsors would be placed in the distributor’s downline power leg because the number of front line distributors is limited to two (Spillover).

 

Profit leg

 

Spillover is not allowed in Profit Leg. All profit leg distributors are hired (or sponsored) directly by their immediate distributor. New distributors will be assigned to the distributor’s power leg as soon as they sign up.