Binary MLM Compensation Plans - 5 Important Things You Must Know

Binary MLM plans are unquestionably in favor 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 organization... a team leg and a pay leg. Everyone you ever sponsor will be placed in a direct line, one after the other, down one of those two legs.

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

1. Use fear of loss to drive recruiting.

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

Not only does this offer "overflow" to your team, 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 join right now, I'll enroll all 5 of these under you. If not, that's cool... I'll just enroll you beneath them when you are ready to join."

There are "powerline" systems that automate this. It's highly effective 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 flip side, requesting 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 develop your business.

There is no crystal 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 upline.

3. TNSTAAFL.

Lovers 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 whole organization 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 join a binary reasoning that you're going to get something for nothing.

Also, when sponsoring someone it's okay to tell them about the overflow they may receive, but make sure they understand TNSTAAFL. It won't assassinate 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 downline to enroll 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 called your "outside" leg.

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

The order is critical... a lot of people sign up to an MLM enroll 1 person and quit. If that 1 person was placed outside, they will get overflow from their upline. If not, they will be working their business by themselves forever.

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

5. The most stable binaries are hybrids.

Plain 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 problems can be easily solved. These hybrid structures-particularly the binary/unilevel-have proven to be very stable and fair to distributors.

They are the BMW of contemporary MLM compensation plans.

Binary MLM Compensation Plans - 5 Important Things You Must Know
Binary MLM compensation plans are really popular these days. Read this to discover the 5 things you should know if you're considering joining a binary MLM.

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