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Major Difference between Binary MLM Plan and Matrix MLM Plan

Posted by mlmsoftech on January 6th, 2020


In the Multi-level-Marketing network, there is extensive use of two plans which are BINARY PLAN and MATRIX PLAN. These two are the most preferable plans for the organizations and companies at their level of new business. These are the plans that have a face-off to each other in the market.

A MLM software Company offers both plans that are good at their place but also have their pros and cons which create differences in them. Here are the work plan and properties by which we can get information about how BINARY and MATRIX compensation plan differ from each other, on which they built their empire in marketing.


It is a network of two legs like the legs of a compass. As in compass, both legs are interrelated to each other the same pattern it follows. One is the power leg that holds system and the other one is profit leg which takes it to the growth.

Now in this network organization or company have only two people beneath them. A new member who joins the company will be given place under the legs depending on the availability of space. No one join position other than these legs. This concept of joining is called spillover.

  •  In this plan, one gets profit like a team profit as everybody has its growth with success.
  •  From upline to the downline at each step organizers to the distributors actively involved like helping hand.
  •  It has an unlimited pay-out limit by which one can ask for the return from the success.


Forced matrix or ladder plan are the other names of the MATRIX MLM plan. It is an organized plan having a fixed width and depth, pyramid-like structure. It represented as ‘MxN' in the market, ‘M' represent the width and ‘N' represent the depth of the system.

  •  It has fixed and firm pattern like 3x7, 4x7, 5x7, 3x9, 2x12 which are common and follows in the market.
  •  Joiner gets a commission at each step when a new member joins as per level set by the plan.  
  •  For example in a 3x7 matrix plan, there are 3 upline members like one can add only three members that can go to level 7 as its downline. In this 3 upline members get benefit up to the joining of level 7 member, so they motivate downline to add new members.
  •  This plan grows rapidly and also has immediate earning possibilities which help in the growth of each step of the ladder.


l The monetary position is better in MATRIX plan to compare to BINARY PLAN

l Joining and distribution of members is quite easy in BINARY Plan than MATRIX Plan

l BINARY Plan based on two legs whereas MATRIX Plan is based on fixed parameters

l Downline hiring of members is not allowed in BINARY Plan but it is valid in MATRIX Plan for some extent

l BINARY Plan is more like a team game where each gets profit but in MATRIX Plan upline or front line person get more profit than a downline person.


These are some advantages and disadvantages of both the compensation plans which can help one to choose according to the affordability and accessibility of the business. Both are amazingly superior at their level in the MLM compensation plans.

Also See: Matrix Plan, Mlm Plan, Binary Plan, Matrix Mlm, Plan, Mlm, Matrix

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