Difference Between Binary vs Generation MLM compensation plan

Would you like to invest in an MLM company? Binary Vs Generation is quite similar, as many network marketing executives have said. But reality has a different point of view. Both MLM modules are unique and tailor-made. For more information on the difference between Binary vs Generation MLM compensation plans, see this article.

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#Binary MLM Plan

A Binary MLM Plan is a two-legged structure. One is on the right and the other is the left leg in the MLM structure. As a distributor, you can only recruit two members from each other. The same process is done for both legs. This is how the structure works in multilevel businesses.

#Generation MLM Plan

We discuss these plans in detail so that you have no doubts about choosing the correct plan between binary and generation.

Difference Between Binary And Generation MLM Plan

#Tree Structure

Generation MLM Plan uncountable legs. There is no specific number of legs under the add-on. Users can go with the “N” number of legs in the frontline.

#Commission Analysis

The commission calculation is easier in the Binary MLM plan as compared to Generation.

In the Binary MLM Plan, the commission would not decrease as the level is increased. In the generation plan, the commission is decreased as the level increases.

#Spill Over

Spillover refers to a concept where the sponsor comes below any of the existing downlines until the space would be emptier in level. There is no spillover come across the factors because there is an “N” number of legs in this plan.

#Main Income pattern

Let’s see the difference between earning periods. One can see the earning income in these two patterns-

#The front liner

The term mentions how many members are under your level 1. Whereas the generation plan has an infinite number of associates in the frontline.


Capping describes a limit in which you can see how much amount you can earn in a day. If the commission amount passes the limit then additional income goes to the firm’s profit.

Final Words- Binary vs Generation MLM compensation plan

Hopefully, the article has appropriate information to know about the benefits of the Binary and Generation MLM Plan. You can analyze the difference between binary vs generation compensation MLM plans. It’s paramount for a company to explore the features of the MLM plan. This will allow you to choose to customize MLM software. Hence, it will help you to stay profitable with the MLM business.