Binary MLM Pay Plans - 5 Things You Should Know

Binary MLM plans are genuinely in favor these days, so here are a few tips from my own experience.

First, for the inexperienced, binary MLM pay plans have one defining characteristic: you have only two "legs" in your downline... a left leg and a right leg. Everyone you ever enroll will be placed in a continuous line, one after the other, down one of those two legs.

Here are 5 things you should remember if you're considering joining a binary MLM compensation plan:

1. Use fear of loss to drive recruiting.

In a binary, each individual who joins is placed below the person who joined before them (in that leg.)

Not only does this offer "overflow" to your team, which encourages teamwork and retention, but the savvy MLM sponsor can use this to motivate recruiting.

"I have 5 people's paperwork right here on my desk. If you enroll right now, I'll enroll all 5 of these below you. If not, that's cool... I'll just enroll you beneath them when you are ready to join."

There are "powerline" systems that automate this. It's potent stuff.

2. Position is critical.

Negotiate your placement with your upline carefully.

Some positions get more overflow than others. Your sponsor is going to want to place you where it benefits them the most, but be careful. If your sponsor places you at the top of their inside leg, you won't get any overflow unless they continue to sponsor.

On the other side, insisting to be placed to maximize overflow will help you... but it may not help your sponsor as much. So, they may be less willing to devote time and effort to mentoring you to develop your business.

There is no crystal clear answer, which is why my tip is just to tread carefully. Don't just enroll without reasoning it through and discussing it with your upline.

3. TNSTAAFL.

Readers of Douglas Adams' "Hitchhiker's Guide to the Universe" know all too well... There's No Such Thing As A Free Lunch.

Even with the finest position and a whole organization worth of overflow, a binary MLM still won't pay you a dime unless you recruit yourself. Overflow has to be paired with volume you bring to the table for it to be worth anything. So, don't go into a binary thinking that you're going to get something for free.

Also, when enrolling someone it's okay to tell them about the overflow they may receive, but make sure they understand TNSTAAFL. It won't assassinate the sale... if anything, it'll sell them on you as a leader even more. And if you do lose them, you didn't want 'em anyway.

4. Teach your team to sponsor outside then inside.

The first person you recruit into a binary should go on the same side, either left or right, that your sponsor placed you on. This is considered your "outside" leg.

The second person you enroll should go "inside," in the other leg.

The order is important... a lot of people sign up to an MLM sponsor 1 person and quit. If that 1 person was placed outside, they will get overflow from their upline. If not, they will be working their business alone forever.

To shelter against that, you should always teach "outside, inside."

5. The most stable binaries are hybrids.

Plain binary MLMs are no longer cutting-edge. In fact, there were many problems with them.

But, when "merged" with a unilevel, coded bonus, or other commission structure, those problems can be easily resolved. These hybrid structures-particularly the binary/unilevel-have proven to be very stable and fair to distributors.

They are the Mercedes of contemporary MLM compensation plans.

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