Binary MLM Compensation Plans - 5 Issues You Should Know

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

First, for the inexperienced, binary MLM pay plans have one definitive characteristic: you have only two "legs" in your group... 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 sides.

Here are 5 points you should remember if you're thinking of joining a binary MLM compensation plan:

1. Use fear of loss to push recruiting.

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

Not only does this offer "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 enrollments here on my desk. If you sign up right now, I'll enroll all 5 of these underneath you. If not, that's cool... I'll just place you below them when you are ready to join."

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

2. Position is crucial.

Negotiate your position with your upline with caution.

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 opposite 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 expand your business.

There is no crystal clear best solution, which is why my suggestion is just to tread carefully. Don't just enroll without thinking 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 top position and a complete organization worth of overflow, a binary MLM still won't compensate you a cent unless you recruit yourself. Overflow has to be paired with volume you generate for it to be worthwhile. So, don't enroll in a binary thinking that you're going to get something for free.

Also, when enrolling someone it's okay to reveal them about the overflow they may receive, but make sure they recognize TNSTAAFL. It won't assassinate the enrollment... 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 organization 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," on the other leg.

The order is significant... a lot of people sign up to an MLM recruit 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 shield against that, you should always teach "outside, inside."

5. The most stable 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 pay structure, those issues can be easily resolved. These hybrid plans-particularly the binary/unilevel-have proven to be very stable and fair to distributors.

They are the Mercedes of contemporary MLM pay plans.

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Binary MLM Compensation Plans - 5 Issues You Should Know

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