Multilevel Marketing business is an opportunity to make money in less time. It depends on several compensation plans, like Binary, matrix, hybrid, Unilevel, Investment, etc.. MLM network works on a member tree structure. There are two plans that are most popular which are BINARY PLAN and MATRIX PLAN in Multi-Level Marketing. They both plan to recommend to all startups networks. We are a Software Development company we also suggest both concepts for New MLM Clients.
We define the Binary and Matrix compensation plan in this article to make differences in both plans.

BINARY MLM PLAN

The MLM Binary compensation Plan is the most common and popular plan among network marketing companies. Entrepreneurs, part-timers, and Networker, members who want to earn money through the Multi-level Marketing business.
Binary MLM Plan works on Binary Tree Structure. It is a network of left and right members of two legs. Both are integrated with each other with parent members. Basically The Binary tree consists of 2 subtrees, one sub trees called as power leg and another known as Profit leg. There is an unlimited distribution network but members can have only two levels as left and right. The new member will place under the legs depending on the availability of space. This process of joining known as spillover.

Power leg

As the New Member Registered in the system he will place in the distributor’s power leg automatically. The structures of Power leg means it will automatically replace new members or distributors. The distributor’s frontline is limited with 2 members, any new sponsor would be placed automatically in the distributor’s Downline.

Profit leg

Profit leg distributors choose personally by their distributor as the new joining. They will be placed in the networker’s power leg. In profit leg when a new member is added, the binary structure ends and the profit is distributed among the members. That’s why this leg is called a profit leg.

MATRIX MLM PLAN

Matrix MLM plan is as popular as the Binary Compensation Plan. This plan is known as Forced Matrix, a ladder plan also. Matrix MLM Plan is a pyramid structured, with a fixed number of width and depth or row and columns of the tree structure. This static range of member to member structure improves marketing, New members position will set in accordance with the levels. The tree gets completed after filling of all slots. The MLM Matrix Plan has several versions 3*7, 4×7, 5×7, 3×9, 2×12 ratios.
Ex. “3*7 Matrix model” When a member sign up the system, upline member can add only 3 members and downline will complete their matrix to added 7 members. Upline member gets benefits to the joining of level 7 members, you have to have your two and then those two have to do the same and the repeated networks build your organization, and if you are in a good position, you may see others are placed in your matrix from above, as well as from those below you and you earn a percentage from all retail or distributor sales of products or services. This plan is working fast and give the chance to earn huge profit to each step of leader and member.

Difference between Matrix MLM Plan and Binary MLM Plan

1. Payouts: As comparison matrix plan binary pay more cause of unlimited level.
2. Implementation: Binary plan is quietly complicated rather than a matrix plan. Members can earn a commission from  unlimited levels. Where in matrix width and height always fixed.
3. Invite Member: Binary plan is easy to extend rather than a matrix. Cause in binary each member has to invite 2 members.
4. Genealogy: Binary plan has 2 members only on the first level, where the matrix first level depends on member. Sometimes it may be 3×5, and some time 5×10 depends on the compensation plan using by the company.
5. Business Matching: Binary does not match on the level, it matches on the left and right member placed, where matching on the level is compulsory for matrix plan.
6.  New Member Registration: In binary, if members invite more than 2 members, they placed on the extreme left and extreme right side. So can be any number of level. Your direct member may be placed on the 100th. Level. Cause binary pays for an unlimited level. Matrix MLM plan if the first level filled, member placed under the best available position in left to right.
7.  Downline Works: Matrix compensation plan is a working concept, It fully depends on member work. Where in binary MLM plan power leg concept influence downlines to work in another leg.

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