Home / Compensation Models
Model 01 — Binary

Two legs. A ratio that flips. A cycle that pays.

A binary plan places every new person into one of two teams beneath you — a left leg and a right leg. You get paid when the volume in those two legs hits a set ratio, commonly 2:1 (often written 50:25). The important part: the ratio isn't tied to "left" or "right" — it's tied to whichever leg is ahead that period. If your right leg pulls ahead this week, it takes the 50-share; if left pulls ahead next week, left takes it instead.

The core idea

Every cycle consumes 75 total units, split 2:1 from whichever leg is stronger.

Stronger leg (this period)
50 units
2 : 1
Weaker leg (this period)
25 units

50 + 25 = 75 units per cycle. So 150 total units, split correctly, is exactly 2 cycles — regardless of which physical leg supplied the 50 and which supplied the 25. Volume that doesn't fit the ratio isn't lost — it carries forward to the next period.

Try it yourself

Run your own product sales through the ratio.

Set what the product is worth and how many units it generates toward a cycle, enter how many sold in each leg this period, and see how many cycles you'd earn — plus what carries forward.

⚠ SAFETIES OFF — input caps removed. Very large or extreme numbers can slow this page down or produce enormous results. Use with caution.
Product
This period's sales

Capped at illustrative sizes (up to 200 units/product, 1,000 sales per leg) so the cycle math stays exact and instant.

These are real sales to real customers — that volume is what cycles and earns the payout below, not headcount or recruiting activity. The customers themselves don't earn cycles or commission on it; that goes to whichever affiliate is in the sponsorship chain. More on that on Rank & Activity.

Cycle settings
:
Left leg revenue$0.00
Right leg revenue$0.00
Left leg volume (derived)0 units
Right leg volume (derived)0 units
Stronger leg this period—
Units consumed per cycle75
Cycles achieved0
Volume carried forward — strong leg0
Volume carried forward — weak leg0
Total payout this period
$0.00

Illustrative example only — not a guaranteed outcome.

Cycles achieved × payout per cycle.
The trap: unit-rich, payout-poor

When one leg pulls way ahead, the surplus doesn't vanish — it's the "volume carried forward" row above. That banked volume is real future potential, but it pays nothing on its own until the other leg catches up. Someone who's built a single leg way out of balance can be sitting on a huge number that looks like wealth while actually being paid close to zero.

Potential cycles locked in your banked volume0
Units still needed on the lagging leg to unlock it0
What that potential is worth, if fully unlocked$0.00

This assumes banked volume stays available indefinitely. Many real plans cap cycles per day or week, or expire unmatched volume after a set time. "Potential" isn't "earned," and it isn't guaranteed to convert at all.

Binary vs. Unilevel, in short: binary pays on balancing and cycling two legs — extra volume in one leg over-supply doesn't help until the other leg catches up. Unilevel pays a percentage down a fixed number of levels regardless of leg balance — there's no cycling or carryover to track. Compare it against the Unilevel Plan page.

Illustrative calculator only. No specific company, product, or income outcome is implied — real plans often add minimum "active" volume requirements, capped daily cycles, or leg-specific compression rules.

Binary and Unilevel are two of several shapes real comp plans take — see other common structures.

Placement

What happens when you sponsor more than two people?

You can personally sponsor as many people as you want — there's no cap on recruiting. But the binary tree itself only has two open positions directly under you. Your first two go there. Anyone beyond that has to go somewhere else in the tree, since your own two slots are taken.

That person "rolls over" — they get placed further down, still credited to you as your personal recruit, but physically attached beneath one of your first two. Where exactly depends on the company's placement rule. Two real conventions, in particular, produce very different-looking trees:

Weak leg (balanced)

Spillover goes to whichever leg is smaller.

Every new person is routed to whichever of the two legs below currently has fewer people in it, over and over, at every level. Keeps both sides growing at roughly the same rate.

Power leg (extreme)

All spillover funnels into one designated leg.

One leg (the "power leg") automatically fills with spillover from you and your whole upline. The other leg (the "profit leg") only ever grows from that person's own direct recruiting — no spillover ever reaches it.

Both are real, commonly used conventions — companies also alternate placement, or let the sponsor manually choose a leg. Toggle below to see how differently the same recruits land.

A tree diagram like this can look pyramid-shaped — but position in the tree isn't what determines a legitimate plan. See why this isn't a pyramid or Ponzi scheme, or go straight to the FTC's consumer guide.

A mechanics risk worth naming — not a claim about any real company's practice: because placement is what determines who occupies a tree position, it's possible to try gaming that with fake or "dummy" accounts — no real person, no real purchase, nothing behind them — created purely to manufacture cycle-qualifying volume. It doesn't create real money; it just obscures where the volume is actually coming from. That's exactly the kind of gap the FTC's real-retail-sales test (see Rank & Activity) is designed to catch — a plan whose own numbers can't tell a placement from a paying customer has a real structural weakness, whether or not anyone's currently exploiting it.

Questions people actually ask

About the binary model

Am I limited to two people?
You can personally sponsor as many people as you want — there's no cap on recruiting. What's limited to two is the tree itself: only two positions open directly beneath you. Anyone beyond your first two becomes a personal recruit placed on the outside of a leg — see the spillover diagram above.
Which leg's volume actually gets paid — the stronger or the weaker?
The weaker (smaller) leg is what limits your cycle count, since a cycle needs volume from both legs in the set ratio. Extra volume sitting in the stronger leg beyond what the ratio calls for isn't wasted — it carries forward rather than being double-paid.
What happens to volume that doesn't get used in a cycle?
It carries forward to the next commission period, as long as you stay active under the plan's rules. It isn't lost — it's waiting for the other leg to catch up.
What's "compression," and why does it matter?
If someone in your downline goes inactive, their position can block volume or commission from flowing past them. Compression is the rule that skips inactive positions so volume and payouts still reach the next active, qualifying person instead of getting stuck. See Rank & Activity for the full explanation, including rank and monthly purchase requirements.
Is there a cap on how many cycles I can earn in a day or week?
Often, yes. Many real plans cap the number of cycles payable in a given period to keep payouts sustainable for the company. Always check the specific plan's rules rather than assuming cycles are unlimited.
Does it matter which leg is "left" vs. "right"?
Not structurally — the ratio is about whichever leg is stronger vs. weaker at that moment, not a fixed side. See the flipping-ratio explanation near the top of this page.
Do the customers behind these sales earn anything themselves?
Usually not, but they're not invisible to the tree either — a customer commonly does occupy a real position (wherever they were placed), and their purchases generate units the same way an affiliate's would, flowing up the chain to benefit whoever's above them. What they don't do is cycle: their own position doesn't accumulate or match volume for itself, so volume from anyone placed below them just flows on past. Convert that customer to an affiliate account later, and they keep their position but only start accumulating toward their own cycles from that point forward. Either way, no plan pays anyone — affiliate or customer — a commission for their own purchase; it's always a sale to someone else. Some companies do run a separate customer-referral perk that pays regular customers a small reward for referring other buyers, without making them a full affiliate — but that's a distinct, company-specific feature. See Rank & Activity for more.
Why do I have a huge banked volume but almost no payout?
This is the most common way people misjudge a binary plan: volume on your stronger leg only becomes money once your weaker leg matches it at the required ratio. A leg you've built way out of balance can carry an enormous number that represents real potential — but until the other side catches up, none of it has actually paid out. Being "unit-rich" and being "payout-poor" can be true at the same time. See the calculator above for exactly how much of your own banked volume is sitting in that state right now.

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