Binary MLM Compensation - 5 Things You Should Understand

Binary MLM plans are really widespread these days, so here are a few lessons from my own experience.

First, for the inexperienced, binary MLM pay plans have one definitive 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 legs.

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

1. Use fear of loss to motivate recruiting.

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

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

"I have 5 people's enrollments in front of me on my desk. If you join right now, I'll enroll all 5 of these underneath 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 important.

Negotiate your position with your upline with care.

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

There is no obvious answer, which is why my suggestion is just to tread carefully. Don't just enroll without thinking it through and talking to 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 top position and an entire enterprise worth of overflow, a binary MLM still won't pay you a cent unless you recruit yourself. Overflow has to be paired with volume you generate for it to be beneficial. So, don't join a binary thinking that you're going to get something for free.

Also, when recruiting someone it's great to tell them about the overflow they may receive, but make sure they appreciate TNSTAAFL. It won't assassinate the enrollment... 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 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 known as your "outside" leg.

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

The order is material... a lot of people sign up to an MLM recruit 1 person and throw in the towel. 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 shield against that, you should always teach "outside, inside."

5. The best binaries are hybrids.

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

But, when "merged" with a unilevel, coded bonus, or other pay 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 compensation plans.

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