Binary Plan
About Binary Plan
One of the fastest growing plans in MLM, the Binary plan allows growth in a matrix of two. This is an extremely popular plan among MLM companies. A binary plan follows a left and right tree structure as illustrated below:
How Binary Plan Works?
A Binary plan encompasses a technique of pairs. A member typically progresses up the chain by incorporating 2 members directly under him/her. In binary plan a member can introduce maximum 2 members directly under him, 1 each on the left and right side. After a member has added a member each to the left side and right side the member has to opportunity to spill the member in the down-line i.e. Place a new member below an empty left or empty right as his /her down-line.

Check your Plan Calculation.
Binary Plan: Commissions
The commissions for a member in a binary plan is calculated based on the total number of members added on each side ( left side and right side). Each complete left and right combination is referred to as a pair. Typically a one left and one right is referred to as one pair, also two lefts and one right or one left and two rights is also only one pair. But please note that the pair calculation logic followed varies for different companies.

The commissions are paid on a cycle basis. The duration of the cycle varies from company to company. The cycle duration can be 8hrs, 12hrs, 1 day, 1 week, 10 days, 15 days or even 1 month.

When a cycle is completed the members are paid commissions based on the matching pairs in the cycle.
Cycle Calculations
Capping or ceiling is referred to as the maximum payable limit per cycle. There amount payable per cycle is restricted by the ceiling or capping limit.

For a cycle, a pair is typically calculated as follows:
  1. The count of members Bought forward on the left plus new members introduced on the left side and
  2. The count of members Bought forward on the right plus new members introduced on the right side.
  3. Commission for Current cycle pair =(Number of members joining*Fixed Binary Cost)/(Total Number of pairs)
Power side
What is power side?

If there are 20 members on the left and only two on the right. The 18 remaining pairs on the left side is called a power side.

Power side commission's payment

For the commission payment purposes the balance side of the power leg is either carry forwarded, or in some cases it laps. In the above example the member will get a commission for 2 pairs only provided it is under the capping or ceiling limit.

Commissions: FAQ
  1. Any commission earned greater than the ceiling defined for a member is flushed. For example if a member has a capping of Rs 50,000 and if he/she has garnered Rs 75,000 as commissions only the capping limit of Rs 50,000 will be payable to the member as commission.
  2. There can be further additional deductions in the commissions as per the company's terms and conditions. This is called as trimming.
  3. The Payment of commission is done for unlimited depth i.e. the commissions are paid till the levels the members are registered and there is no reduction for multiple levels.
Other ways of giving Commissions
a) Product Points

In case a company has a wide product range as part of the MLM scheme, The commissions can also calculated based on product points. These can be used a basis for calculation of the Commissions.

For example if the product "Mobile" is equivalent to 1 point and laptop is equivalent to 5 points. if on the left side there is a member registered with "Laptop" and on right side there are 5 members with "Mobile", then the overall pair count will be equivalent to 5.

b) Royalty

Commissions can also be paid by the company based on the Royalty. Royalty can be of multiple types such as "Gold", "Silver", "Platinum" etc. It is calculated as per the achieved pair counts by the member. For example if a member achieves 400 pairs he/she becomes"Silver" on reaching 600 pairs he/she becomes"Gold" and so on.

The royalty amount is typically assigned as some predefined percentage of the company turnover. The royalty commission is given either given for a fixed duration or is lifetime depending on the company policy

c) Awards and Reward

Awards and rewards are another way of giving commissions by a MLM company. Award Rewards are generally calculated based on the number of pairs garnered during a particular defined time frame or it could also be without any time frame restrictions.

Eg when a member gets 10 pairs in a week he/she is rewarded with a 'Mobile' etc.

Why you should opt for Binary plan ?

One of the fastest growing MLM plans, a binary plan can help an MLM company increase its customer base in a very short duration of time. Binary Plan has already proven to be as one of the fastest ways to increase a company's customer base compared to any other MLM plan.

A pyramid plan, the Binary plan is extremely popular among companies which deals with non FMCG based products like Insurance policy, Power saver and Suit length, etc. The Binary plan is typically used by the MLM companies who are looking for one time sell of their products to its members.

MLM companies generally attach many other plans along with the Binary Plan to their advantage. It includes other plans like Board Plan, Generation Plan, Investment Plan and Re-purchase plan.

This Binary plan has many variations and is also commonly known as :
  • Daily Binary
  • Weekly Binary
  • Australian Binary
  • Smart Binary
  • Repurchase Binary
  • 1x3 Binary Plan (First 2 members as Left and third as Right )
  • 1x4 Binary Plan (First Two Members as Left and next Two Members as Right)
Virtualmlm: The best MLM Binary software

Our state of the art Binary Software will ensure that you get a power packed and a robust Binary software complete with all the important features and trends. Our binary software consists of all the desired functionalities for members and MLM companies likewise.

Binary software Features

Software Features for MLM Company:

  • Highly customizable as per the requirements of the company.
  • Flexibility to change the pair value calculation at any given time.
  • Ability for the MLM company to calculate their exact costing/Profit and joining amount per member by means of the software.
  • Comprehensive reporting mechanisms on
  • Credit member and pin joining.
  • Convert to paid.
  • Commissions will not be given until the credit pin/member is converted to paid.
  • Ability to finalize entire MLM calculation including the most critical points for a binary plan.
  • Per pair Commissions.
  • Ceiling/Capping limit.
  • Royalty Management.
  • Awards rewards Management.

Software Features for members:

  • Members can view the entire genealogy till unlimited depth without refreshing the page.
  • Members can view their entire downline, Business Tree count till any member.
  • By placing the cursor only the members can get all the info about their business tree/count.
  • Extensive cycle wise reporting provided. It includes reports on
  • Bought forward left and bought forward right.
  • New joining left and new joining right.
  • Total number of pairs.
  • Carry forward left and Carry forward right.

Looking for other set of features? Check out the complete range of features


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