Binary MLM Pay Plans - 5 Things You Should Grasp

Binary MLM plans are without a doubt popular these days, so here are a few tips from my own experience.

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

Here are 5 things you should recognize if you're thinking about joining a binary MLM compensation plan:

1. Use fear of loss to drive recruiting.

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

Not only does this offer "overflow" to your downline, 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 below them when you are ready to join."

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

2. Position is important.

Negotiate your placement with your upline mindfully.

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, demanding 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 assisting you to expand your business.

There is no 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 sponsor.

3. TNSTAAFL.

Fans 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 best position and a complete company 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 in for it to be worth anything. So, don't go into a binary thinking that you're going to get something for nothing.

Also, when enrolling someone it's cool to tell them about the overflow they may receive, but make sure they understand TNSTAAFL. It won't eliminate the deal... 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 recruit outside then inside.

The first person you sponsor 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 sponsor should go "inside," in the other leg.

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

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

5. The most stable binaries are hybrids.

Straight 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 compensation structure, those issues 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 modern MLM compensation plans.

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