Binary MLM Plans - 5 Facts You Need To Understand
Binary MLM plans are undoubtedly popular now, so here are a few tips from my own experience.
First, for the newbies, binary MLM pay plans have one distinctive characteristic: you have just two "legs" in your group... a left leg and a right leg. Everyone you ever enroll will be placed in a direct line, one under the other, down one of those two sides.
Here are 5 important things you should grasp if you're considering joining a binary MLM compensation plan:
1. Use fear of loss to motivate recruiting.
In a binary, each customer who joins is placed below the person who joined before them (in that leg.)
Not only does this provide "overflow" to your downline, which encourages partnership and retention, but the savvy MLM sponsor can use this to motivate recruiting.
"I have 5 people's paperwork in front of me on my desk. If you sign up right now, I'll enroll all 5 of these below you. If not, that's cool... I'll just enroll you under them when you are ready to join."
There are "powerline" systems that automate this. It's amazing stuff.
2. Position is significant.
Negotiate your placement with your upline deliberately.
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 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 mentoring you to maximize your business.
There is no clear best solution, which is why my tip is just to tread carefully. Don't just join without reasoning it through and talking to 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 finest position and a complete company worth of overflow, a binary MLM still won't compensate you a dime unless you recruit yourself. Overflow has to be balanced with volume you bring to the table for it to be beneficial. So, don't enroll in a binary thinking that you're going to get something for free.
Also, when sponsoring someone it's cool to reveal them about the overflow they may receive, but make sure they comprehend TNSTAAFL. It won't eliminate 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 organization to sponsor 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," on the other leg.
The order is crucial... a lot of people join an MLM sponsor 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 alone forever.
To shelter against that, you should always teach "outside, inside."
5. The best binaries are hybrids.
Straight binary MLMs are no longer state-of-the-art. In fact, there were many problems with them.
But, when "merged" with a unilevel, coded bonus, or other commission plan, those issues can be easily resolved. These hybrid structures-particularly the binary/unilevel-have proven to be very stable and fair to distributors.
They are the BMW of modern MLM pay plans.
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