Binary MLM plans are really widespread these days, so here are a few lessons from my own experience.

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

Here are 5 issues 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 individual who signs up is placed underneath 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 paperwork right here on my desk. If you enroll right now, I'll enroll all 5 of these under you. If not, that's cool... I'll just enroll you underneath them when you are ready to join."

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

2. Position is critical.

Negotiate your position with your upline 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 other 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 grow your business.

There is no obvious answer, which is why my suggestion is just to tread carefully. Don't just join without reasoning it through and discussing it with your sponsor.

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 an entire enterprise 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 bring in for it to be worth anything. So, don't go into a binary reasoning that you're going to get something for nothing.

Also, when recruiting someone it's great to tell them about the overflow they may receive, but make sure they recognize 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 team 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 known as your "outside" leg.

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

The order is paramount... a lot of people join an MLM enroll 1 person and quit. If that 1 person was placed outside, they will get overflow from their sponsor. If not, they will be working their business by themselves forever.

To guard against that, you should always teach "outside, inside."

5. The best binaries are hybrids.

Vanilla 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 compensation structure, those issues can be easily solved. These hybrid structures-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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