Compensation plan differentiates MLM businesses from each other. It plays an important role in the growth and success of an MLM organization. Compensation plans define how distributors are incentivized, how the team grows, the possibility for career growth, etc. Binary MLM plan is one of the most popular compensation plans in the direct selling industry. 17 out of the top 100 MLM companies in the world work with binary MLM plans.

As the name suggests, the binary MLM plan is a two-legged plan, where each distributor can have only two frontlines. This is designed so as to focus on a balanced sales culture, driving team efforts among the distributors. Generally in a binary MLM plan, the weaker leg is considered as the pay leg and the stronger leg, the reference leg. Let us understand some advantages of the binary MLM plan.

- Distributors are motivated to improve their weaker leg sales as it is the reference for commissions. This also helps to boost their productivity.

- This is an easier to understand compensation plan. This makes it easier for sponsors to educate customers and their referrals about the business.

- Most companies work with a weekly commission cycle. This keeps distributors motivated as they earn for their efforts every week.

- Binary MLM tree allows sponsors and downlines to place their referrals strategically in order to obtain maximum benefits.

- Spillover is beneficial to both the uplines as well as sponsors, enabling collective growth within the team.

In an era where a lot of audiences favor work from businesses, binary MLM companies stand a great chance of grasping the attention of customers. With its numerous benefits, flexible and easy to understand nature, MLM companies can largely benefit from the binary MLM compensation plan. To increase their chances of success, many MLM companies are switching to a binary compensation plan.