A Binary Plan is a systematic organizational structure that is established by Multilevel Marketing (MLM) companies and is the most popular marketing compensation plan. It is quite popular among companies, part-time professionals, network marketers, and all the other members who wish to set up an MLM business. Consequently, the members are supposed to add only two forefront members.
This means that the sponsor can make only two distributors underneath, i.e. Left Leg and Right Leg. It is also referred as Power Leg and Profit Leg. If member sponsors more than two new members, excess members are placed at downline below the sponsoring member's forefront. This 'spillover' is an attractive feature that appeals new members, since they only need to sponsor two members to participate in the binary compensation plan. That is why it is often termed as Binary Spillover MLM Plan.