Binary MLM plans are undoubtedly widespread these days, 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 team leg and a pay leg. Everyone you ever enroll will be placed in a direct line, one after the other, down one of those two legs.
Here are 5 details you should understand 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 signs up is placed beneath the person who joined before them (in that leg.)
Not only does this provide "overflow" to your team, which encourages teamwork 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 sign up right now, I'll enroll all 5 of these under 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 important.
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, requesting 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 mentoring you to maximize your business.
There is no obvious answer, 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.
Lovers 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 a complete enterprise worth of overflow, a binary MLM still won't pay 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 reasoning that you're going to get something for free.
Also, when sponsoring someone it's great to tell them about the overflow they may receive, but make sure they appreciate TNSTAAFL. It won't destroy 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 enroll outside then inside.
The first person you recruit 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," in 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 by themselves forever.
To shield 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 a lot of 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 BMW of contemporary MLM compensation plans.
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