Binary MLM plans are undoubtedly widespread today, so here are a few thoughts from my own experience.

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

Here are 5 details you should grasp 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 joins is placed under the person who joined before them (in that leg.)

Not only does this provide "overflow" to your team, which encourages collaboration and retention, but the astute MLM sponsor can use this to motivate 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 underneath you. If not, that's cool... I'll just place you under them when you are ready to join."

There are "powerline" systems that automate this. It's ultra powerful stuff.

2. Position is vital.

Negotiate your position with your upline 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, 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 helping you to maximize your business.

There is no obvious solution, which is why my advice is just to tread carefully. Don't just join 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 prime position and a complete enterprise worth of overflow, a binary MLM still won't compensate you a penny unless you recruit yourself. Overflow has to be balanced with volume you bring in for it to be worth anything. So, don't enroll in a binary thinking that you're going to get something for gratis.

Also, when sponsoring someone it's great to show them about the overflow they may receive, but make sure they appreciate TNSTAAFL. It won't eliminate 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 sponsor 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 called your "outside" leg.

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

The order is material... a lot of people join 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 alone forever.

To defend 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 a lot of problems with them.

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

They are the BMW of contemporary MLM payment plans.

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