Binary Plan Software is a network marketing platform built around a compensation structure where each member can have a maximum of two direct recruits — one on a left leg and one on a right leg — and commissions are calculated based on the sales volume or contribution activity generated by both legs.
The binary plan is one of the most widely adopted compensation structures in MLM software globally, valued for its simplicity and the way it encourages teamwork: a strong recruiter in your upline can place new members into your weaker leg, directly benefiting your commissions.
How binary commissions are calculated:
- The system tracks “Business Volume” (BV) or “Points” generated by each leg
- Commissions are typically paid on the weaker leg’s volume (the leg with fewer points)
- The ratio is usually 1:2 or 1:3 (the stronger leg can be up to 2–3× the weaker leg and still qualify)
- Volume that exceeds the qualifying ratio is “flushed” — it doesn’t carry over, incentivising balanced leg building
Additional earnings in a binary plan:
- Direct referral bonus — paid immediately when a personally referred member joins or makes a purchase
- Matching bonus — a percentage of a direct referral’s binary commissions
- Rank achievement bonus — one-time or recurring bonuses for reaching defined rank levels
- Leadership pool — a share of global company volume distributed to high-rank members
Software requirements:
- Real-time left/right leg volume tracking
- Carry-forward or flush logic at each binary cycle (daily, weekly)
- Rank qualification engine
- Genealogy tree with left/right view for each member
See also: Member to Member Matrix, Zawang Compensation Plan, Passive Earner System