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structure Hayden Hurst Hat , new members are introduced into a Binary Tree where each 鈥渘ode鈥?or new member of the organization has a left and right sub-tree.

Considered one of the simplest of the popular marketing compensation plans, binary plans began to be introduced by MLM companies in the late 1980s and became one of the four most commonly used organizational structures by the early 2000s


The Binary Plan as the name suggests is based around the number 2, which represents the maximum number of frontline associates that any business centre can have. Any additional distributors must then be placed under one of your existing frontline members.


This creates a very supportive environment for new members as the easiest way for associates to achieve success is by assisting their new members to build their organizations. This team approach makes the binary plan very attractive as there is a lot of support (both initial and ongoing) as all associates within your organization work towards achieving a common goal.


Structure:


In each sub-tree of a binary plan, there is an outside leg, also known as a power leg Justin Tucker Hat , and an inside leg, known as a profit leg When new distributors are recruited, they are always placed underneath their recruiter, typically in the next available node in the power leg, even if the recruiter does not have any leaf nodes left. This contrasts with the profit leg which is typically filled with members who have been directly sponsored or enrolled by their immediate ancestor.
Another element of a binary plan is that it makes each member only responsible for recruiting and sponsoring two other people to join the plan Terrell Suggs Hat , which can potentially lead to a rapid expansion of the plan in a short amount of time[with a potentially unlimited number of members. However, if a recruiter successfully recruits more than two people, the new addition will be added to next available node in the power leg. This allows for the profits from gaining a new member to be shared between all ancestors in the power leg, regardless of who recruited them, which is a process known as spillover. This helps foster a team-like dynamic within the binary plan