Binary MLM Compensation Plans - 5 Features You Should Remember

Binary MLM plans are actually in favor today, so here are a few lessons from my own experience.

First, for the newbies, 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 straight line, one after the other, down one of those two sides.

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

1. Use fear of loss to push recruiting.

In a binary, each individual who joins is placed below 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 skilled MLM sponsor can use this to motivate recruiting.

"I have 5 people's paperwork 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 underneath them when you are ready to join."

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

2. Position is significant.

Negotiate your position with your upline mindfully.

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 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 assisting you to build your business.

There is no crystal clear solution, which is why my suggestion is just to tread carefully. Don't just join without reasoning it through and discussing it with your sponsor.

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 perfect position and an entire organization worth of overflow, a binary MLM still won't compensate you a cent unless you recruit yourself. Overflow has to be balanced with volume you bring in for it to be worthwhile. So, don't go into a binary thinking that you're going to get something for nothing.

Also, when recruiting someone it's okay to show them about the overflow they may receive, but make sure they appreciate 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 sponsor 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 known as your "outside" leg.

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

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

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

5. The best binaries are hybrids.

Plain binary MLMs are no longer state-of-the-art. In fact, there were several 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 Cadillac of contemporary MLM payment plans.

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Binary MLM Compensation Plans - 5 Features You Should Remember

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