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Binary MLM Compensation - 5 Important Things You Need To Understand
Binary MLM plans are actually in favor these days, so here are a few lessons from my own experience.
First, for the newbies, binary MLM pay plans have one specific characteristic: you have just two "legs" in your organization... a left leg and a right leg. Everyone you ever enroll will be placed in a straight line, one after the other, down one of those two legs.
Here are 5 details you should grasp if you're thinking about joining a binary MLM compensation plan:
1. Use fear of loss to push recruiting.
In a binary, each person who enrolls is placed beneath 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 skilled MLM sponsor can use this to motivate recruiting.
"I have 5 people's enrollments here on my desk. If you join right now, I'll enroll all 5 of these below 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 highly effective stuff.
2. Position is critical.
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 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, 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 mentoring you to build your business.
There is no crystal clear answer, which is why my suggestion is just to tread carefully. Don't just join without thinking it through and talking to your upline.
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 top position and an entire organization worth of overflow, a binary MLM still won't pay you a cent unless you recruit yourself. Overflow has to be balanced with volume you bring in for it to be worthwhile. So, don't join a binary thinking that you're going to get something for free.
Also, when recruiting someone it's okay to tell them about the overflow they may receive, but make sure they appreciate TNSTAAFL. It won't eliminate the deal... 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 recruit 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 known as your "outside" leg.
The second person you enroll should go "inside," in the other leg.
The order is material... a lot of people join an MLM enroll 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 solo forever.
To shield against that, you should always teach "outside, inside."
5. The best binaries are hybrids.
Plain binary MLMs are no longer cutting-edge. In fact, there were several problems with them.
But, when "merged" with a unilevel, coded bonus, or other compensation plan, those problems can be easily resolved. 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 Important Things 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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