Binary or
unilevel?
Neither plan is better for every business. Binary suits teams that build two balanced legs of product buyers. Unilevel suits repeat-purchase products and wide personal recruiting, with simpler payouts. Pick the plan your product margin can fund, then build the software around it. Coded Idea builds both, from Rs 15,000 for ready-to-launch software.
This guide is for founders who are choosing a plan before they build. We are Coded Idea, an MLM software company in Mohali (Sector 127), near Chandigarh. We have delivered 100+ projects. The short version is below. The details follow.
Last updated 28 October 2026. Coded Idea, Mohali (Sector 127), near Chandigarh.
Two ways to pay a network
Binary vs unilevel MLM plan: side-by-side comparison
| Point | Binary plan | Unilevel plan |
|---|---|---|
| Structure | Each member has two legs, left and right. New members are placed under a placement parent, so spillover is possible. | Each member can sponsor any number of people on level 1. No width limit and no spillover. |
| Payout trigger | Matched product volume between the two legs. The weaker leg sets the pay, within a cap. | Product volume bought at each paid level below you, at a fixed percentage per level. |
| Best for | Teams that can grow two balanced legs. Products with a clear order value. | Repeat-purchase goods such as wellness, grocery or personal care. Members who recruit widely. |
| Main risks | Pairs from one order can be paid to many uplines, so the payout ceiling must be set. A weak leg can feel unfair to new members. Pairing on joining fees is not acceptable. | Pay can spread thin across many levels. Deep levels may not pay unless compression is used. Commission must reverse on refunds. |
| Software needs | Genealogy with placement rules, pair matching, caps, flush-out, carry-forward ledger, e-wallet, KYC, TDS. | Level commission engine, payout ceiling, compression option, autoship, refund reversals, e-wallet, KYC, TDS. |
| Setup effort | Higher. More rules to define: pair rate, ratio, cap, carry-forward. | Lower. Fewer moving parts, easier to explain to members. |
| Starting price at Coded Idea | Rs 15,000 ready-to-launch. Rs 35,000 custom. | Rs 15,000 ready-to-launch. Rs 35,000 custom. |
Choose binary if
- Your members can realistically build two balanced teams.
- You sell products with a clear, fixed order value.
- You are ready to set a pair rate, a cap and a payout ceiling before launch.
- You want pay to depend on team balance, not on how many people a member sponsors.
- You can explain flush-out and carry-forward to your members in plain words.
Choose unilevel if
- Your product is bought again and again, like a monthly consumable.
- Your members will mostly sponsor people personally.
- You want a plan that a new member understands in one minute.
- You want a lighter launch with fewer rules to get wrong.
- You plan to add autoship and want commission to follow real repeat orders.
Not sure? Start with the margin, not the plan
The plan name matters less than the math behind it. Add up every bonus you will pay. That total must fit inside a payout ceiling your product margin can carry. If it does not fit, the plan will fail on either type. Send us your product margin and we will tell you which plan fits it.
A small worked payout example (illustrative)
Illustrative only. These numbers are plan arithmetic, not income estimates or earnings claims. The rates below are chosen for the example. Your own plan will use its own rates.
Say one member’s team buys products worth 80,000 business volume (BV) in a week.
Binary version
- Left leg: 50,000 BV. Right leg: 30,000 BV.
- Matched volume is the weaker leg: 30,000 BV.
- Pair bonus at 10% of matched volume: Rs 3,000.
- The extra 20,000 BV on the left leg is carried forward, if the plan allows carry-forward. If the plan has a cap, anything above it is flushed.
Unilevel version
- Level 1: 20,000 BV at 10% = Rs 2,000.
- Level 2: 30,000 BV at 5% = Rs 1,500.
- Level 3: 30,000 BV at 3% = Rs 900.
- Total: Rs 4,400. Level 4 and below pay nothing unless the plan pays them.
The difference is not that one plan pays more. The difference is the trigger. Binary pays when the two legs match. Unilevel pays when people at paid levels buy. A member with one huge leg earns little in binary that week. A member with a wide first level earns well in unilevel. In both cases, commission comes from product purchases, not from joining fees.
India’s Direct Selling Rules, 2021: keep it product-led
India’s Consumer Protection (Direct Selling) Rules, 2021 ban pyramid schemes and the collection of joining fees as the basis for pay. Income must come from the sale of real products or services. Whichever plan you pick, do not pay commission or pairs on joining fees or activation packs. This is general information, not legal advice. Please take advice from a qualified lawyer before you launch.
Frequently asked questions
Which is better for a new MLM company, binary or unilevel?
For most new companies, unilevel is easier to launch. It has fewer rules and members understand it fast. Binary can work well if your team can build two balanced legs and you are ready to set caps and carry-forward rules. Both need a payout ceiling that your product margin can afford.
Is binary MLM plan legal in India?
The plan type is not what decides this. Under India’s Direct Selling Rules, 2021, pyramid schemes and joining-fee-based income are banned, and income must come from product sales. A binary plan that pays on real product purchases is built differently from one that pays on joining fees. This is not legal advice, so please check your plan with a lawyer.
Can I start with unilevel and move to binary later?
Yes, but plan the change. Moving mid-way affects existing members’ earnings, so the new rules need clear notice and a clean start date. It is easier to choose well at the start. We can also build a hybrid plan, quoted after a call, if you want both ideas in one structure.
Which plan costs less to build as software?
Both start at the same price at Coded Idea: ready-to-launch software from Rs 15,000 and custom builds from Rs 35,000. Binary usually needs more setup time because of pair rules, caps and carry-forward. Hybrid and enterprise plans are quoted after a short call.
What is spillover, and does unilevel have it?
Spillover is when a new member is placed under someone other than their sponsor, usually in a binary tree, to fill an empty leg. Unilevel has no spillover. Every member you sponsor sits on your level 1.
Can you build crypto or token payouts for either plan?
Yes. Crypto MLM software starts from Rs 30,000 ready-to-launch and Rs 45,000 for custom builds. Payout rules still need to follow the same product-led principles and local law, so take legal advice first.
Send us your plan document
Already have a plan on paper? Send it to us. We will check the math, flag where the payout ceiling is at risk, and tell you which structure fits your product.
Email: info@codedidea.com
Go deeper on each plan
Coded Idea, Mohali (Sector 127), near Chandigarh. Serving Tricity, Punjab, Himachal, Rajasthan, UP and Bihar. Last updated 28 October 2026.