NETSOFT MLM’ Binary compensation plan is an organizational structure deployed as software by Marketing or Multi-level marketing companies, where new members are introduced into a Binary Tree where each new member (node) of the organization has a left and right sub-tree. Considered one of the simplest and popular marketing compensation plan. Binary MLM plans has been introduced by MLM and Marketing companies in the late 1980s and became one of the four most commonly used business model in the early 2000s.
Every binary plan has two distinct sub-trees – a left sub-tree and a right sub-tree.Whichever of these sub-trees makes the least amount of money is called the “pay leg”. This is due to the fact that the members of both sub-trees will be paid a percentage of the pay leg’s growth regardless of how much growth that person is responsible for or which tree that person is actually in. Binary compensation plans have become the darling of start-up multilevel marketing companies, however a binary plan is a multilevel marketing compensation plan which allows distributors to have only two front-line distributors. If a distributor sponsors more than two distributors, the excess are placed at levels below the sponsoring distributor’s front-line. This “spill over” is one of the most attractive features to new distributors since they need only sponsor two distributors to participate in the compensation plan.