In essence, a Binary Compensation Plan is basically an 'equality' oriented plan that results in a well-balanced system that makes the plan active. A Binary Plan is basically a two-legged plan/ structure in which each new member or distributor recruits two peoples to the first level either in the left leg or right leg (also called left subtree and right subtree).
One of the subtree is known as a Power Leg or Profit Leg while the second subtree is Weak Leg. Most of the Binary Direct Selling Companies give compensation based on the weaker leg (due to a concept called Balance Volumes) increase their profitability. Every member is allowed to sponsor only two front line members and excess are placed below the sponsoring member downline. This process is called "spillover" process and is one of the most interesting aspect of Binary Plan.