Binary MLM Compensation - 5 Things You Must Remember


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

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

Here are 5 important things you should know if you're thinking of joining a binary MLM compensation plan:

1. Use fear of loss to motivate recruiting.

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

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

"I have 5 people's enrollments in front of me on my desk. If you enroll 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 ultra powerful stuff.

2. Position is critical.

Negotiate your placement with your sponsor with caution.

Some positions get more overflow than others. Your sponsor is going to want to place you where it pays 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 helping you to build your business.

There is no obvious answer, which is why my tip is just to tread carefully. Don't just hop in without thinking it through and talking to 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 prime 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 matched with volume you generate for it to be beneficial. So, don't go into a binary reasoning that you're going to get something for gratis.

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 kill the enrollment... 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 team 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," in the other leg.

The order is crucial... a lot of people enroll in an MLM recruit 1 person and throw in the towel. 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 best binaries are hybrids.

Vanilla binary MLMs are no longer cutting-edge. In fact, there were many problems with them.

But, when "combined" with a unilevel, coded bonus, or other pay plan, 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 contemporary MLM compensation plans.

Binary MLM Compensation - 5 Things You Must Remember
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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