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Binary MLM Pay Plans - 5 Facts You Ought To Know


Binary MLM plans are unquestionably widespread today, 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 group... a left leg and a right leg. Everyone you ever sponsor will be placed in a continuous line, one after the other, down one of those two sides.

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

1. Use fear of loss to drive recruiting.

In a binary, each individual 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 skilled MLM sponsor can use this to drive recruiting.

"I have 5 people's enrollments 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 compelling stuff.

2. Position is critical.

Negotiate your placement with your upline deliberately.

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 other 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 assisting you to grow your business.

There is no clear best solution, which is why my suggestion is just to tread carefully. Don't just hop in without reasoning it through and talking to your sponsor.

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 prime position and a complete enterprise 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 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 sponsoring someone it's okay to reveal them about the overflow they may receive, but make sure they comprehend TNSTAAFL. It won't eliminate the deal... 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 organization 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 known as your "outside" leg.

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

The order is significant... a lot of people join an MLM recruit 1 person and resign. If that 1 person was placed outside, they will get overflow from their sponsor. If not, they will be working their business solo forever.

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

5. The most stable binaries are hybrids.

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

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

They are the Mercedes of modern MLM pay plans.