Binary Plan is an MLM Plan where the MLM leads gets added to infinite down-line. The new distributors are placed on the left and right legs under the scheme of two-legged structure where one subtree is known as the power leg and the other is known as the profit leg. Thus the tree expands in a well-balanced way.
The way Binary MLM Plan works
In Binary MLM Plan a member has to recruit two other members under them, which at a high time will lead to the large expansion of the network in a short period. The tree of a Binary network plan will have two legs- left and right. But, if a member recruits more than two, then the additional member will be added to the next member down-line.
This concept allows the additional member to be shared with down-line member (power leg) and the one who recruited them. This is referred to as spillover. With respect to profit leg, there won’t be a spillover as the profit leg will be expanded with individually sponsored downlines. The binary plan mostly quantity oriented and not based on the levels. Get to know more about Binary MLM Plan
Unilevel MLM Plans
In Unilevel MLM Compensation Plan will payout to the first person, a fraction from every sale his downline members have done. This concept is based on giving out a dividend from the business volume of every distributor downline individually, up to a certain level.
To understand it in a better way, let’s imagine a 4 level Unilevel plan paid out at a business volume of 1000. The percentage of dividends will be descending downline. The dividend of the sponsored members at the first level will be 25% of the business volume. The second level will be, 10% of the to sales volume and third and fourth level will have 5% and 2.5% of their business volume respectively. The dividend provided, Volume of the Business, Compensation period totally depends on the MLM Organizations as each MLM companies will be using varying compensation policies.
Nowadays most of the MLM Companies use their basic MLM Unilevel Plan and customize it based on their business profile. The most commonly used customizations include- regulation of payment structure by reducing the member volume/ Business volume, the added criterion to pay out the commissions. Technically Unilevel MLM plan will be best suited for any type of Business. Read more about the execution of Unilevel MLM plan