Binary MLM Pay Plans - 5 Facts You Need To Remember

Binary MLM plans are really prominent today, so here are a few lessons from my own experience.

First, for the uninitiated, binary MLM pay plans have one specific characteristic: you have only two "legs" in your group... a team leg and a pay leg. Everyone you ever partner with will be placed in a straight line, one under the other, down one of those two sides.

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

1. Use fear of loss to drive recruiting.

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

Not only does this provide "overflow" to your downline, which encourages collaboration and retention, but the skilled MLM sponsor can use this to drive recruiting.

"I have 5 people's enrollments right here on my desk. If you sign up right now, I'll enroll all 5 of these beneath 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 compelling stuff.

2. Position is vital.

Negotiate your position with your sponsor thoughtfully.

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 opposite 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 helping you to grow your business.

There is no obvious solution, which is why my suggestion is just to tread carefully. Don't just hop in without thinking it through and discussing it with your sponsor.

3. TNSTAAFL.

Fans 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 compensate you a cent unless you recruit yourself. Overflow has to be matched with volume you bring in for it to be worth anything. So, don't enroll in a binary reasoning that you're going to get something for gratis.

Also, when recruiting someone it's great to show them about the overflow they may receive, but make sure they recognize TNSTAAFL. It won't kill 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 organization to recruit outside then inside.

The first person you enroll 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," on the other leg.

The order is significant... a lot of people enroll in an MLM enroll 1 person and quit. 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 shield against that, you should always teach "outside, inside."

5. The best binaries are hybrids.

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

But, when "combined" with a unilevel, coded bonus, or other compensation 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 Cadillac of modern MLM payment plans.

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