A Binary MLM Plan employs a Two Legged (Left leg, Right Leg) structure in Multi-Level Marketing where each new distributor or member is placed on either left or right subtree. One subtree is known as a Power Leg or Profit Leg while the second subtree is a Profit Leg or a weak leg.
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A Binary compensation plan requires each member to recruit and sponsor two other members to join the plan. This can potentially lead to a fast expansion of the network in a relatively less amount of time.
In the front line of the binary network marketing plan, there will be two legs, Left and Right. However, if a recruiter hires more than two members, the new member will be added to the next available position in the power leg. This allows a new member to be shared between all downline’s power leg, nevertheless of who recruited them. This process is known as spillover. But in the case of the profit leg, there will be no spillover because the profit leg will only grow with the individually sponsored downlines.