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Binary MLM plans are undoubtedly in favor now, so here are a few lessons from my own experience.

First, for the newbies, binary MLM pay plans have one definitive 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 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 push recruiting.

In a binary, each person who joins 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 underneath you. If not, that's cool... I'll just place you under them when you are ready to join."

There are "powerline" systems that automate this. It's highly effective stuff.

2. Position is crucial.

Negotiate your position with your upline with care.

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, 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 crystal clear best solution, 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.

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 top position and a complete 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 generate for it to be worthwhile. So, don't join a binary thinking that you're going to get something for free.

Also, when sponsoring someone it's okay to reveal them about the overflow they may receive, but make sure they appreciate TNSTAAFL. It won't eliminate the enrollment... 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 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 enroll should go "inside," in the other leg.

The order is material... a lot of people join an MLM recruit 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 alone 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 pay 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 BMW of contemporary MLM pay plans.

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