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Binary MLM Compensation Plans - 5 Things You Need To Remember
Binary MLM plans are without a doubt prominent these days, so here are a few tips from my own experience.
First, for the newbies, binary MLM pay plans have one special characteristic: you have just two "legs" in your organization... 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 legs.
Here are 5 details you should grasp if you're thinking of joining a binary MLM compensation plan:
1. Use fear of loss to motivate recruiting.
In a binary, each person who signs up is placed underneath the person who joined before them (in that leg.)
Not only does this offer "overflow" to your team, which encourages partnership and retention, but the astute MLM sponsor can use this to motivate recruiting.
"I have 5 people's enrollments in front of me on my desk. If you enroll right now, I'll enroll all 5 of these below you. If not, that's cool... I'll just place you below them when you are ready to join."
There are "powerline" systems that automate this. It's highly effective stuff.
2. Position is important.
Negotiate your position with your sponsor mindfully.
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, 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 maximize your business.
There is no crystal clear solution, which is why my tip is just to tread carefully. Don't just enroll without thinking it through and talking to your upline.
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 perfect position and a complete enterprise worth of overflow, a binary MLM still won't compensate you a cent unless you recruit yourself. Overflow has to be matched with volume you generate for it to be worthwhile. So, don't go into a binary thinking that you're going to get something for nothing.
Also, when sponsoring someone it's okay to show them about the overflow they may receive, but make sure they recognize TNSTAAFL. It won't destroy 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 recruit 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 enroll should go "inside," in the other leg.
The order is paramount... a lot of people sign up to an MLM sponsor 1 person and drop out. 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 shield against that, you should always teach "outside, inside."
5. The most stable binaries are hybrids.
Straight binary MLMs are no longer state-of-the-art. In fact, there were a lot of problems with them.
But, when "combined" with a unilevel, coded bonus, or other commission 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 modern MLM compensation plans.
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