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Binary MLM plans are really in favor 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 partner with will be placed in a straight line, one after the other, down one of those two legs.

Here are 5 important things you should grasp 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 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 astute MLM sponsor can use this to motivate 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 beneath 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 potent stuff.

2. Position is critical.

Negotiate your placement with your upline 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, 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 helping you to grow your business.

There is no crystal clear 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.

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 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 gratis.

Also, when recruiting someone it's okay to tell them about the overflow they may receive, but make sure they comprehend TNSTAAFL. It won't eliminate 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 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 known as your "outside" leg.

The second person you enroll should go "inside," in the other leg.

The order is crucial... a lot of people join an MLM enroll 1 person and resign. If that 1 person was placed outside, they will get overflow from their sponsor. 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 a lot of problems with them.

But, when "merged" 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 Cadillac of contemporary MLM compensation plans.

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