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Binary MLM Plans - 5 Things You Should Understand
Binary MLM plans are unquestionably prominent these days, so here are a few thoughts from my own experience.
First, for the inexperienced, binary MLM pay plans have one distinctive characteristic: you have just two "legs" in your organization... a team leg and a pay leg. Everyone you ever enroll will be placed in a direct line, one under the other, down one of those two legs.
Here are 5 important things you should remember if you're considering joining a binary MLM compensation plan:
1. Use fear of loss to push recruiting.
In a binary, each person who signs up is placed beneath the person who joined before them (in that leg.)
Not only does this offer "overflow" to your downline, which encourages teamwork and retention, but the astute MLM sponsor can use this to motivate recruiting.
"I have 5 people's paperwork here on my desk. If you join right now, I'll enroll all 5 of these under you. If not, that's cool... I'll just place you beneath them when you are ready to join."
There are "powerline" systems that automate this. It's impressive stuff.
2. Position is critical.
Negotiate your placement with your upline delicately.
Some positions get more overflow than others. Your sponsor is going to want to place you where it helps 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 flip 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 develop your business.
There is no clear answer, which is why my advice is just to tread carefully. Don't just enroll without reasoning it through and talking to your upline.
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 finest position and a whole company worth of overflow, a binary MLM still won't pay you a penny unless you recruit yourself. Overflow has to be paired with volume you bring to the table for it to be worthwhile. So, don't join a binary reasoning that you're going to get something for free.
Also, when sponsoring someone it's cool to tell them about the overflow they may receive, but make sure they comprehend TNSTAAFL. It won't assassinate the sale... 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 downline 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 sponsor should go "inside," in the other leg.
The order is crucial... a lot of people sign up to an MLM sponsor 1 person and give up. If that 1 person was placed outside, they will get overflow from their upline. If not, they will be working their business by themselves forever.
To shelter against that, you should always teach "outside, inside."
5. The most stable binaries are hybrids.
Straight binary MLMs are no longer cutting-edge. In fact, there were a lot of problems with them.
But, when "merged" with a unilevel, coded bonus, or other commission plan, those problems 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 modern MLM compensation plans.
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