What is a binary MLM compensation plan?

Binary MLM compensation plan
For multi-level marketing companies, the compensation plan structure is a major component of the company’s business and growth strategies. What is a binary MLM compensation plan? As one of the most common plan structures chosen by MLM companies, it’s worth an in-depth look to understand how binary comp plan works and the type of MLM strategies it best aligns with.

No matter how a compensation plan is structured, an MLM compensation plan defines how the company pays its independent sales representatives for their sales as well as sales made by the representatives they recruit. MLM compensation – and the MLM software that enables the plan – are strategic tools that allow companies to recognize, reward, and incent their sales representatives for sales as well as for demonstrating desired behaviors, such as recruiting or social selling. There are several different MLM compensation plan structures in use today, including unilevel, binary, matrix, and stairstep breakaway plans. Below, we explore the binary compensation plan in detail.

About ByDesign Technologies:
ByDesign Technologies, a Retail Success company, is a technology solutions company serving the direct-to-consumer corporate market, including affiliate, influencer, social retail, and the direct selling industries. Since 2000, ByDesign has launched nearly 1,000 clients, programed 2,700+ unique compensation plans, processed $7b+ in bonus payments, developed 9,400+ unique promotion conditions, and completed more than 2 million direct selling parties.