Binary MLM Plan Note: Distributors become a part of the binary plan by purchasing an enrollment package. The enrollment package here means either a service or a list of products. The distributor buys the package and becomes a part of the binary MLM company . Lets See Different Scenarios Of Forming A Binary MLM Structure Before looking into the structure, try to understand the difference between a Sponsor and the Parent of a downline. Sponsor: The sponsor is the person who introduced the new member to the binary network. Parent: The distributor, who is the direct upline of the new member introduced to the binary network.