Binary MLM Pay Plans - 5 Issues You Need To Understand

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

First, for the inexperienced, binary MLM pay plans have one defining characteristic: you have only two "legs" in your group... a left leg and a right leg. Everyone you ever sponsor will be placed in a straight line, one under the other, down one of those two legs.

Here are 5 important things you should recognize if you're considering joining a binary MLM compensation plan:

1. Use fear of loss to drive recruiting.

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

Not only does this provide "overflow" to your downline, 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 sign up right now, I'll enroll all 5 of these underneath you. If not, that's cool... I'll just enroll you underneath 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 carefully.

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, 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 grow your business.

There is no obvious answer, which is why my tip is just to tread carefully. Don't just enroll without reasoning 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 best position and an entire enterprise 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 to the table for it to be worth anything. So, don't enroll in a binary thinking that you're going to get something for nothing.

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

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

The order is crucial... a lot of people sign up to an MLM sponsor 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 protect 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 many problems with them.

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

Binary MLM Pay Plans - 5 Issues You Need To Understand
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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