Binary MLM Plans - 5 Facts You Ought To Understand

Binary MLM plans are really widespread today, so here are a few thoughts from my own experience.

First, for the uninitiated, binary MLM pay plans have one distinctive characteristic: you have just two "legs" in your organization... a left leg and a right leg. Everyone you ever enroll will be placed in a straight line, one after the other, down one of those two sides.

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

1. Use fear of loss to push recruiting.

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

Not only does this provide "overflow" to your team, which encourages partnership and retention, but the astute MLM sponsor can use this to drive recruiting.

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

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

2. Position is significant.

Negotiate your placement with your sponsor deliberately.

Some positions get more overflow than others. Your sponsor is going to want to place you where it helps 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 flip 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 mentoring you to grow your business.

There is no obvious solution, which is why my advice is just to tread carefully. Don't just hop in without reasoning it through and talking to your upline.

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 top position and an entire enterprise worth of overflow, a binary MLM still won't compensate you a penny unless you recruit yourself. Overflow has to be matched with volume you bring to the table for it to be worthwhile. So, don't join a binary thinking that you're going to get something for free.

Also, when recruiting someone it's great to show them about the overflow they may receive, but make sure they comprehend TNSTAAFL. It won't destroy the sale... if anything, it'll prove them on you as a leader even more. And if you do lose them, you didn't want 'em anyway.

4. Teach your downline to recruit 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 known as your "outside" leg.

The second person you recruit should go "inside," on the other leg.

The order is crucial... a lot of people enroll in an MLM sponsor 1 person and drop out. If that 1 person was placed outside, they will get overflow from their upline. If not, they will be working their business solo forever.

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

5. The best binaries are hybrids.

Vanilla binary MLMs are no longer state-of-the-art. In fact, there were a lot of problems with them.

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

They are the Cadillac of contemporary MLM payment plans.

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