Binary MLM Plan: How Beneficial Is This?
Binary MLM Plan is the simplest known scheme used by most of all network marketing companies. As the name implies, the binary MLM is based on the number 2. and it resembles a binary tree.
A distributor will introduce 2 new members (lead distributors) and then they will employ two more distributors each.
The MLM distributor A - will use the binary program to hire a pair of distributors, and his lead line distributors will be assigned B and C.
Now, distributors, B and C will hire D, E, F, and G, who will be A's subsequent distributors. This process will continue and new distributors will join.
Theoretically, it could go to infinity when more distributors join. This is a 2-by-infinity matrix program.
The two people who sponsor don't always end up on the same level. Someone above them may have had to fill two positions in front of him, or he may have sponsored others while they were setting up the sales system to put someone in that position.
MLM binary system – How It Works?
The binary tree has 2 sub-trees or downline branches, one is called the Power leg and the second sub-tree is called the Profit leg.
Power Leg
When new distributors register, they are automatically placed in the distributor's power leg. There will be automated employment of new distributors under the Power leg. As the number of front row distributors is limited to 2, any new sponsor will be placed in the distributor's downline power leg (spillover).
Profit Leg
Profit leaks do not support overflow or spillover. All for-profit distributors are personally recruited (or funded) by their immediate distributors and when new distributors sign up, they are automatically placed in the distributor's branch of power.
Spillover Bonus - Benefits of MLM Binary Plan:
In a binary MLM scheme, there will only be 2 leading distributors for each distributor.
Suppose one employs 3 distributors B, C, and D. Now, D, who was hired by A, cannot be his main distributor since the previous two positions have been filled.
The user can choose to put it under B or C. Because a distributor hires (or finances) new distributors, they don't end up on the same level (as top-line distributors).
This overflow is called spillover in MLM terms.
One should not conclude that the two sponsors are their top-line distributors because some of the previous distributors will hire new distributors to build the sales distribution network and will have to hire new distributors in that space.
In a nutshell, this Binary MLM plan is a very popular business plan published by many multilevel marketing companies that makes it easy for new members to understand and MLM companies to explain to their clients or leaders.
Get more useful thoughts on this in the free MLM software demo!