A common MLM compensation structure where each distributor has two frontline positions, forming a binary tree. As they recruit more people, these new members are placed in either their left or right leg, and further recruits "spill over" down the line.

The products offered in the network marketing company are typically sold through the binary plan, and distributors are often incentivized to sell these products.

A commission earned when a certain balance of sales volume or number of recruits is achieved on both the left and right legs. The "pair" refers to the matching of activity on both sides.

Pair Ratio (or Sales Ratio): This is the specific ratio of volume or recruits on the two legs that triggers the pairing bonus. Common ratios include:

• 1:1: Equal volume or recruits on both the left and right legs. For example, 100 sales volume on the left and 100 on the right constitute a pair.
• 1:2 or 2:1: One leg needs to have double the volume or recruits of the other. For instance, 100 on the left and 200 on the right (1:2), or 200 on the left and 100 on the right (2:1).
• 2:3 or 3:2: A less common ratio where the legs need to meet this specific proportional balance.

In the context of a binary scheme in multi-level marketing (MLM), capping refers to a limit placed on the maximum income pair a distributor can earn from a binary compensation structure.

In a binary plan within Multi-Level Marketing (MLM), spillover refers to the placement of new recruits into a distributor's downline by someone above them in the organizational structure (their upline).