MLM Binary Plan

MLM Binary plan is a plan structure which is used in Multi-Level Marketing, that is very simple and popular among MLM Plans.

In this plan, each joiner/member is positioned in the binary tree structure. The right sub-tree and left sub-tree concept is the member's downline connections. Each member will have both trees. This plan is being very popular because of its simplicity. Started in late 1980, binary plan has become one of the most popular plans in the MLM industry by the 21st century.

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cloud mlm plan

MLM Binary Plan Structure

Each user in a binary plan will have two down-lines. known in various names.

  • Right leg/Left leg
  • Outside leg/Inside leg
  • Power leg/Profit leg

This down-line can be called as any of the three above. A binary plan's special feature is that a member-only have to recruit two members, although not limited to. And encourage them to recruit members under their legs. This can result in a rapid growth in the network with a large number of organization members in a short period of time. Saying that it is not that a member can only recruit two members but can recruit/sponsor more than two. And if they do the recruited member will be added to the available node in the power leg, this is called as spill over. Which means the profit from these persons will be shared with all ancestors in the power leg. Spillover will help the organization members to act as a team with shared benefits from adding more members. Unlike the other MLM plan structures binary structure can hold multiple business centres. That said, any member can be a business centre agent and recruit agents.

Binary MLM plan Compensation

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Profit Leg

Every Binary plan structure will have two branches, The Left & Right. Whichever of this branch makes more money, that is the profit leg.

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Power Leg

Whether it right or left, the leg with less members will be the profit leg. Profit leg will not grow beyond the power leg.


When the power leg and profit leg reaches the same depth, the maximum profit will be available. So the profit is increased when there are new joiners in the system. Each member should concentrate on profit leg, that means, there is no determining profit leg and power leg by its position. Whenever there is a new joiner in the profit leg, ancestors of the joiner will be awarded with the benefits.

cloud mlm plan

Binary Commission

As the name says it plays with 2 nodes, But there is no limit of nodes in the whole network. In binary compensation, each node represents members in the network. The main benefit of a binary plan is that you start earning when you refer two new nodes ( members ) and the earnings will be continued whenever a new member joins on your downline.

This commission depends upon the PV (Personal volume) / BV ( Business volume). The PV /BV can be achieved by each member by referring a new member into the network. Each referring will give 100 PV to the sponsor. This PV will be added to one of his leg based on the new member joined. Whenever any member in the network has a minimum of 100 PV in both of his legs, the member will be rewarded by the binary commission. When a new member joins the network, PV will distribute not only to the sponsor, it will distribute all up-line users in the network, where the new member placed in the network. So in this way, the members in the up-line will also be able to earn commission by the new members joining under them.

In Cloud MLM Software, the admin can configure all the values from the software administration area.

And also admin can limit the binary commission per user every month or week or year from the administration area by setting a binary limit and binary limit duration.

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  • The term 'Rank' refers to the relative position of a member in the network. By default, each member holds a basic rank.
  • The rank up-gradation is depending upon the number of referrals the user personally did, and the total number of members which has a specific rank under the user in the binary tree.
  • Cloud MLM's Binary MLM software is capable of managing all those settings i.e: the rank can be managed from the admin side rank settings. Also, it can be completely reconstructible as per your own custom plan..
cloud mlm plan

Sponsor Commissions

  • The sponsor commission is also referred to as referral commission/leader bonus.
  • By introducing a new member to this network, each user will be able to achieve the sponsor commission.
  • In cloud MLM Software, The amount for sponsor commission can be defined from the administration area.
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