Binary MLM WooCommerce, WordPress Plugin

A binary MLM plan is one of the most popular and widely used compensation plans in multi-level marketing (MLM). It is called “binary” because it involves a binary tree structure to organize the downline members. In this plan, each member can have only two frontline members, creating a binary tree with two legs, commonly referred to as the “left leg” and the “right leg.

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Features and aspects of the Binary MLM plan

1. Binary Tree Structure: As mentioned earlier, the Binary MLM plan is organized in a binary tree structure. Each member can recruit only two new members directly under them, forming the two legs of the binary tree. This limitation creates a strong focus on building depth in the organization rather than width.
2. Placement Strategy: When a new member joins the MLM organization, they are placed under an existing member’s left or right leg, depending on the availability and placement strategy of the upline member. This placement is crucial, as it affects the overall structure and commission distribution.
3. Spillover: Due to the two-leg structure, there is a possibility of “spillover.” Spillover occurs when a member’s frontline is full (having two members), and any new recruits they bring in are placed under their downline members. Spillover can help members in building their weaker leg.
4. Balancing the Legs: The success of a Binary MLM plan relies on balancing the two legs. Commissions are often calculated based on the sales volume or point value of the weaker leg. This encourages members to focus on developing both legs equally.
5. Matching Bonus: Some Binary MLM plans offer a matching bonus to reward sponsors for helping their downline members succeed. This bonus is a percentage of the commission earned by the sponsored members.
6. Commission Structure: Commissions are typically based on the sales volume or point value generated by the downline members. The exact commission structure can vary based on the MLM company’s policies.
7. Binary Commissions: Binary commissions are the core element of this plan. Commissions are paid out based on the sales volume or points accumulated on the weaker leg. The commission percentage may vary depending on the company and the rank of the member.
8. Carryover Volume: Some Binary MLM plans allow carrying over the extra sales volume from one leg to the next commission period. This prevents losing potential commissions due to imbalances in the legs.