Binary MLM plans are really widespread these days, so here are a few thoughts from my own experience.
First, for the inexperienced, binary MLM pay plans have one defining characteristic: you have only two "legs" in your organization... a left leg and a right leg. Everyone you ever sponsor will be placed in a straight line, one under the other, down one of those two sides.
Here are 5 facts you should recognize 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 enrolls is placed below the person who joined before them (in that leg.)
Not only does this provide "overflow" to your team, which encourages collaboration and retention, but the savvy MLM sponsor can use this to drive recruiting.
"I have 5 people's enrollments here on my desk. If you enroll right now, I'll enroll all 5 of these beneath 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 potent stuff.
2. Position is vital.
Negotiate your placement with your sponsor with care.
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 maximize your business.
There is no obvious answer, which is why my tip is just to tread carefully. Don't just enroll without reasoning it through and discussing it with 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 company worth of overflow, a binary MLM still won't compensate you a cent unless you recruit yourself. Overflow has to be balanced with volume you generate for it to be worthwhile. So, don't go into a binary reasoning that you're going to get something for gratis.
Also, when enrolling someone it's great to show them about the overflow they may receive, but make sure they appreciate TNSTAAFL. It won't destroy the enrollment... 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 considered your "outside" leg.
The second person you recruit should go "inside," on the other leg.
The order is crucial... a lot of people join an MLM enroll 1 person and throw in the towel. 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 shelter 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 a lot of problems with them.
But, when "combined" with a unilevel, coded bonus, or other compensation plan, 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 Mercedes of modern MLM compensation plans.