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Binary MLM plans are unquestionably widespread now, so here are a few thoughts from my own experience.

First, for the newbies, binary MLM pay plans have one distinctive characteristic: you have only two "legs" in your organization... a team leg and a pay leg. Everyone you ever sponsor will be placed in a direct line, one after the other, down one of those two legs.

Here are 5 facts you should grasp 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 underneath the person who joined before them (in that leg.)

Not only does this offer "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 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 enroll you beneath them when you are ready to join."

There are "powerline" systems that automate this. It's ultra powerful stuff.

2. Position is crucial.

Negotiate your position 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 assisting you to maximize your business.

There is no obvious best solution, which is why my advice is just to tread carefully. Don't just join without reasoning it through and discussing it with 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 perfect position and a whole enterprise 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 to the table for it to be worthwhile. So, don't join a binary reasoning that you're going to get something for nothing.

Also, when sponsoring someone it's great to reveal them about the overflow they may receive, but make sure they appreciate TNSTAAFL. It won't eliminate the sale... 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 downline to enroll outside then inside.

The first person you sponsor 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 recruit should go "inside," in the other leg.

The order is essential... a lot of people join an MLM sponsor 1 person and drop out. 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 guard against that, you should always teach "outside, inside."

5. The most stable binaries are hybrids.

Vanilla 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 structure, those problems can be easily solved. These hybrid structures-particularly the binary/unilevel-have proven to be very stable and fair to distributors.

They are the BMW of contemporary MLM pay plans.

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