© 2018 All rights reserved
Made with ❤ with Elementor
A binary MLM (Multi-Level Marketing) plan is a popular compensation plan used in the network marketing industry. It’s called binary because it involves building two legs or downlines of distributors. In a binary MLM plan, each distributor recruits two other distributors, forming a left and a right leg. Each new distributor placed in a downline is positioned in the next available spot in the binary tree structure. This structure resembles a binary tree with each distributor positioned at a node, and each node representing a member of the downline.
Sponsor: The sponsor is the person who introduced the new member to the binary network.
Parent: The distributor, who is the direct upline of the new member introduced to the binary network.
Here distributer X sponsors A and Y, where Y is placed under the right position of A and now A sponsors new member B, where B is placed under the left position of A .However, B wasn’t added on the direct right leg because it was already acquired by distributor Y sponsored by X .since there is no vacant position at the left leg of A.
Here the parent of Y is A and the sponsor of Y is X.
here the sponsor and the parent are different for the downline Y. The binary of A is formed from its own effort and the upline’s (X) effort by spilling over the member Y.
MLM companies create join commission to encourage thair mlm members and attract more new membrs to join binary network. this commission amount credit in user’s account at the time of joining the network .
In the royality bonus, when a certain set target is achieved by distributers , then all the eligible members receive certain percentage of amount as bonus as per the company’s rule.