Binary MLM Compensation - 5 Issues You Need To Understand

Binary MLM plans are unquestionably in favor these days, so here are a few thoughts from my own experience.

First, for the uninitiated, binary MLM pay plans have one definitive characteristic: you have only two "legs" in your downline... a left leg and a right 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 facts you should know 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 joins is placed underneath the person who joined before them (in that leg.)

Not only does this offer "overflow" to your team, which encourages cooperation and retention, but the astute MLM sponsor can use this to drive recruiting.

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

2. Position is critical.

Negotiate your position with your sponsor with caution.

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, 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 assisting you to maximize your business.

There is no crystal clear answer, which is why my advice is just to tread carefully. Don't just hop in 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 perfect position and a whole organization worth of overflow, a binary MLM still won't pay you a penny unless you recruit yourself. Overflow has to be matched with volume you generate for it to be worth anything. So, don't go into a binary thinking 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 appreciate TNSTAAFL. It won't kill 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 team to sponsor 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 essential... a lot of people enroll in an MLM recruit 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 alone forever.

To guard 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 a lot of problems with them.

But, when "combined" with a unilevel, coded bonus, or other pay structure, those issues can be easily resolved. 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.

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