Binary Plan versus Unilevel Plan

Business models will always drive distributor behavior, and the binary plan and unilevel plan are no exceptions.  While some see them as just another compensation plan, these plans operate in vastly different ways.  Both have their advantages and disadvantages, and require distributors to do different things to maximize commissions.

Binary Plan Explained

A binary plan is set up so everyone sponsors 2 and only 2 distributors.  You build 2 legs, and if everyone keeps pace, the plan works wonderfully.  Everybody knows that numbers are perfect and people are not, so here’s what really happens: your upline builds one leg and you build the other.  Since you can only sponsor 2 people, every distributor starting with the third must be placed under someone in your downline.  Usually this is done straight down, with no branching, and it is called a power leg.  If your upline can recruit a lot of distributors, you won’t need to do anything to build your power leg.  The catch in the binary plan is commission is only paid on the weak leg, or at a reduced rate on both legs to the balance point (same number of reps in both legs.)  Either way you look at it, your commission is limited by the size of your smaller leg.

Unilevel Plan Explained

A unilevel plan is characterized by building levels, not legs.  Anyone you personally sponsor is part of your first level.  Anyone sponsored by your first level distributors is part of your second level, and so on.  Most unilevel plans pay on 4 to 8 levels.  Beyond that, you earn no commission.  Contrary to the binary plan, in a unilevel plan it is best to place all of your recruits on your first level – also known as your front line.  If you place people below your first level, you will earn less commission – you’ll be paid on fewer levels of their organization.

Binary versus Unilevel – The Conclusion

A binary comp plan allows you to build depth and work more closely with your team.  Your team will depend on you to help build the power leg.  Since the practice of building under people is common, it is possible for people to do only a little work and still earn decent money.  A unilevel comp plan does not give any free rides, and you don’t depend on others to build part of your organization.  However, there is less teamwork, and in the long run you won’t be paid on your entire organization.  If you prefer being rewarded based on your own efforts, and you value fairness and equality, you’ll probably like a unilevel plan better.  If you like teamwork, building depth, and being paid on virtually all of your organization, then the right plan for you might be a binary plan.