The Binary plan is an organizational plan used by Multi-level marketing (MLM) organizations wherein new organization members are introduced into a Binary Tree structure, or a left and a right subtree.

Normally, one subtree is referred to as a Power Leg while the second subtree is a Profit Leg.

The Power Leg structure has automatic placement of new members, even by members previously enrolled, or ancestors, to the current member. Since any new members must be placed below their enrolling member, they naturally must fall to the lowest available leaf node of the Binary Tree. Order of placement may be any of Preorder, Inorder or Postorder as determined by either the organization or the enrolling member's nearest ancestor.

The Profit Leg of the Binary Tree normally contains those new members who are personally enrolled by the member.

Some members below any node on the tree are automatically placed by a member's ancestor, while other subordinate members are placed at a specific location in the tree by the member himself.

Compensation in a Binary plan is based upon a formula dependent upon a certain value of sales in the Power Leg matching up with a certain value of sales in the Profit Leg.

See also

• Multi-level marketing
• Stairstep Breakaway plan
• Matrix plan
• Matrix scheme

Multi-level marketing