MLM Binary refers to a compensation plan used in multi-level marketing (MLM) schemes. In this plan, each distributor recruits two others to join the network, forming what is often referred to as a "binary tree" structure.

Each distributor is responsible for recruiting and managing two sub-distributors, one on the left leg and one on the right leg. Commissions are typically based on the sales volume generated by each leg, with bonuses and incentives awarded for achieving certain sales targets or for building a balanced structure with equal sales volume on both legs.

MLM Binary compensation plans can vary in complexity and specific rules, but the basic idea is to encourage distributors to recruit new members and build a strong downline by rewarding them with commissions and bonuses based on the sales volume generated by their team. However, it's important to note that MLM Binary structures have faced criticism for their resemblance to pyramid schemes and for the potential to prioritize recruiting over product sales.