Test your custom binary rules. We map your plan to a live, working Demo before you commit.
Who is binary MLM software for?
Binary MLM software fits MLM and direct-selling businesses that want every distributor's frontline capped at two placement positions, with additional recruits placed deeper through spillover rather than stacking wide. It rewards balanced effort across both legs (pay leg / weak leg) instead of whichever single leg grows fastest.
Choose binary when team-driven growth and fast network expansion matter more than unlimited frontline width. If your business needs unlimited width or level-by-level retail commissions, a unilevel or matrix structure may be a closer fit; the compensation-plans hub compares all supported plans.
What is binary MLM software?
Binary MLM software manages a compensation plan where every distributor is placed into one of two legs, left and right, under a placement parent. Sponsorship (who referred the member) and placement (where they sit in the tree) can differ, but the placement tree itself is always two-legged.
This structure suits businesses that want to reward balanced effort across a distributor's whole network rather than whichever single leg happens to grow fastest. If your business needs unlimited frontline width, a unilevel or matrix structure may be a closer fit. The compensation-plans hub compares all supported plans.
How does placement and spillover work?
Each distributor has exactly two placement positions. Whether the next member lands automatically or is placed by an admin depends on the placement rule configured for your plan. Additional members may be placed deeper in the binary tree through spillover according to that rule; this is not hard-coded to automatic-only, because manual administrator placement is also supported.
Two relationships matter and are stored separately:
- Relationship 1 · referral Sponsor Who referred the distributor.
- Relationship 2 · position Placement parent + leg Where the distributor sits — left or right under a specific parent, per your placement rule.
| Spillover / placement rule | What happens | When teams use it |
|---|---|---|
| Automatic weak-leg placement | New member lands in the leg with lower volume, balancing the tree without admin action. | Teams that want hands-off balancing. |
| Manual administrator placement | Admin chooses the parent and leg for each new member. | Teams that want placement control for leadership or geography. |
| Auto-balanced (left-to-right, top-to-bottom) | System fills the next open position in breadth-first order. | Even, predictable tree growth. |
| Extreme-end filling | New member lands at the deepest open position in the chosen leg. | Depth-focused strategies. |
| Holding tank | New members are held temporarily, then placed per the active rule or admin decision. | When placement needs a short review window before committing. |
All five options above are configurable. Custom placement logic beyond these is scoped separately. Your placement rule is set during demo configuration and re-tested before launch.
How are binary commissions calculated?
Commissions are calculated on the pay leg (also called the weaker leg), the leg with lower volume for the payout cycle, using the pairing bonus and pairing ratio you configure. Capping and the carry-forward or flush-out rule then determine what is paid and what happens to unmatched volume.
The illustration below uses sample volume only to show the logic. It is not an earnings projection; your actual bonus, ratio, capping, and cycle come from your plan document and are tested on the demo.
| Input | Sample value |
|---|---|
| Left-leg volume (cycle) | 700 |
| Right-leg volume (cycle) | 1,200 |
| Pairing ratio configured | 1:1 |
| Pairing bonus configured | 10% of pay leg |
| Capping (per distributor, per cycle) | As per your plan, e.g. 5,000 |
| Step | Logic | Result |
|---|---|---|
| 1. Identify pay leg | Lower of 700 vs 1,200 | Left leg (700) is pay leg |
| 2. Pair at 1:1 | 700 paired on both sides | 700 volume paired |
| 3. Calculate bonus | 10% × 700 | 70 credited (subject to capping) |
| 4. Apply capping | 70 ≤ 5,000 cap | Full 70 payable this cycle |
| 5. Handle unmatched volume | 1,200 − 700 = 500 right-leg surplus | 500 carries forward or is flushed, per your configured rule |
If carry-forward is configured, the 500 surplus rolls into next cycle. If flush-out is configured, it is cleared. Both options are supported; the choice is set during configuration and visible in the capped/flushed volume report. A 1:2 or 2:1 ratio would pair at that proportion instead of 1:1, still calculated on the pay leg.
What binary plan rules can MLM Bazaar configure?
Every parameter below is set to match your compensation plan document. Nothing is fixed to a single default:
- Pairing bonus: fixed amount or percentage, as your plan specifies.
- Pairing ratio: 1:1, 1:2, 2:1, or a plan-specific ratio.
- Payout cycle: daily, weekly, monthly, or another cycle you define.
- Capping: maximum payout per distributor, per cycle.
- Carry-forward or flush-out: whether unmatched volume in the stronger leg rolls forward or is cleared.
- Placement rule: automatic weak-leg, manual admin, auto-balanced, extreme-end, or holding tank, or a rule you define.
- Volume and commission labels: the terminology your business uses (commonly BV, SV, or PV) is configured to match, not fixed to one convention.
- Bonus layers in scope: standard binary pairing per the table above; additional bonus layers outside the binary calculation are quoted separately if needed.
How is the binary plan tested before it goes live?
There is no separate sandbox that diverges from what you ship. Your plan is configured on the working demo and what you test is what goes live. Typical steps:
- You share your compensation plan document, including pairing rules, bonus structure, ratios, caps, and payout cycle.
- We map the rules and confirm what is standard scope vs custom scope and integrated scope (payment gateway, SMS, WhatsApp, etc.).
- The binary structure is configured on the working demo.
- Sample distributors and placements are added: left leg, right leg, and spillover cases.
- Pairing, capping, carry-forward or flush-out, and payout-cycle behaviour are run and checked against your plan doc.
- Reports are checked: pairing/spillover, genealogy/tree view, payout history, and capped/flushed volume.
- Corrections are made and re-tested with you.
- The approved configuration is prepared for production launch. Typical test-to-production is 3-7 days once scope, assets, and approvals are ready, not a guaranteed promise for every project.
What reports and payout visibility are available?
- Pairing and spillover report
- Genealogy / tree view (left leg, right leg, spillover lineage)
- Payout history report, traceable back to the pairing and volume that produced it
- Capped or flushed volume report
Admins see full network visibility. Distributors see reporting scoped to their own downline. That scoping is also where support matters: standard support during office hours, 24×7 for emergencies.
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What is included in the Rs 19,999 starting scope?
The table below reflects two confirmations: (a) Rs 19,999 = setup plus first year, (b) GST invoicing/receipts and gateway/SMS/WhatsApp are extra scoped. The exact wording must still match the service agreement.
| Included in Rs 19,999 (setup + Year 1) | Scoped and quoted separately |
|---|---|
| Standard left/right binary structure with spillover | Structural variants: Australian/tri-binary, hyper binary, daily binary, or other non-standard leg mechanics |
| Automatic, manual, auto-balanced, extreme-end, or holding-tank placement per your chosen rule | Custom placement logic beyond the standard options above |
| Configurable pairing bonus, pairing ratio, capping, payout cycle, and carry-forward or flush-out | Additional bonus layers outside the standard binary calculation |
| Your volume/commission labels (BV / SV / PV as you use them) | GST invoicing/receipt customisation; payment gateway, SMS, and WhatsApp integrations; CRM/ERP or other third-party integrations |
| Working demo, configuration, and testing before launch | Data migration and special data work |
| Hosting, domain, and support for the first year (standard hours, 24×7 for emergencies) | From Year 2: hosting, domain, and support renew annually (per service agreement); taxes and third-party charges |
What does MLM Bazaar need from you?
Before configuration starts, we ask for your actual compensation plan document (pairing rules, bonus structure, ratios, caps, and payout cycle), so our team has full end-to-end knowledge of what you are building before anything is configured. If you are still finalising the plan itself, we walk through the standard binary structure with you first and configure from there. The demo is where mismatches surface, not after launch.
Business-model and legal disclaimer: MLM Bazaar provides software and implementation services. The customer is responsible for obtaining professional legal, tax, consumer-protection, payment, and sector-specific advice and for ensuring that its business model, products, compensation plan, advertising, and operations comply with applicable law. MLM Bazaar does not evaluate or approve whether a specific compensation plan design complies with Indian direct-selling regulation. See the compliance guide for the current regulatory framework.
Frequently asked Questions
What is a binary MLM plan?
A binary MLM plan is a compensation structure where every distributor has two placement legs, left and right, under their placement parent. Sponsorship and placement can differ, and additional members may be placed deeper in the binary tree through spillover according to the placement rule configured for the plan.
How is commission calculated in a binary plan?
Commission is calculated on the pay leg, also called the weaker leg, which is the leg with lower volume for the cycle, using the pairing bonus and pairing ratio you configure. The exact bonus amount, ratio, capping, and payout cycle are set to match your compensation plan document.
What happens to volume in the stronger leg that is not matched?
Depending on how your plan is configured, unmatched volume in the stronger leg either carries forward to the next payout cycle or is flushed. Both options are supported and chosen during configuration.
What is the pay leg and weak leg in a binary plan?
The pay leg and weak leg refer to the same leg: the leg with lower volume in the payout cycle, on which the pairing calculation is based. The other leg is the strong leg or power leg. Which leg is the pay leg can flip each cycle depending on volume.
Does MLM Bazaar support binary variants like Australian or hyper binary?
A standard left/right binary structure is included in the Rs 19,999 setup plus first-year scope. Variants with different leg mechanics, such as Australian binary or hyper binary, are built to your specification and scoped separately.
Is a binary MLM plan legal in India?
MLM Bazaar builds and configures the software; we do not certify that a specific business model or compensation plan complies with Indian law. The Consumer Protection (Direct Selling) Rules, 2021, prohibit pyramid and money-circulation schemes. See our compliance guide, and confirm your specific plan with a qualified legal professional.
What's included in the Rs 19,999 starting scope, and what renews after Year 1?
Rs 19,999 covers the standard binary setup (left/right structure, pairing bonus and ratio, capping, payout cycle, carry-forward or flush-out, your volume labels, working demo and testing), plus hosting, domain, and support for the first year. From Year 2, hosting, domain, and support renew annually per the service agreement. Australian or hyper binary variants, GST invoicing customisation, payment gateway, SMS and WhatsApp integrations, and additional bonus layers are scoped separately.
How do I see the binary plan working before committing?
We configure your binary plan on a working demo you and your team test directly, placing sample distributors, running pairing and payout cycles, and checking reports, before anything moves to production. What you test is what goes live.
What does MLM Bazaar need from us to configure the binary plan?
Your actual compensation plan document, including pairing rules, bonus structure, ratios, caps, and payout cycle. If you are still finalising the plan, we walk through the standard binary structure with you first and configure from there.
See your binary plan running on a real demo
Bring your compensation plan document. We configure a working demo around it, and you and your team test it before it goes live.
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