Understanding the Binary MLM Model

Binary MLM compensation plans can be very lucrative if you know how to use them. You need to understand how to recruit, who to recruit, and how to make the Binary MLM comp plan work for you! Binary MLM OverviewrnThe binary MLM system is becoming very popular in the industry and it's not hard to see why. It is fairly easy to understand, generally has low start up costs, and people benefit not only from the efforts of their downline, but of their upline as well! The binary system basically means that you can only have two recruits positioned directly under you, making two sides to your organization (more often called two legs). These two are only allowed two, and so on. The big difference between this plan and some of the more typical matrix plans is that it doesn't have levels. Each side of your organization generates a certain amount of business volume and you are paid a percentage of the total volume created. In a more traditional MLM model you would have different percent commissions based on how many levels down from you a person was. I like to think of the binary MLM system as a big group effort to make money! Your entire upline will continue to help build at least one side of your organization, and your entire downline will help build the other and fill out each side of your organization. Binary MLM BenefitsrnThe big incentive to join a binary MLM system is the concept of spillover. As everyone is only allowed to have two people under them leaders from your upline as well as your enroller will be helping you grow your organization as they will have to place people they recruit under you. The system usually makes you build your outside legs (i.e. if you have someone in your left leg you put the next recruit on their left leg, etc.) So when you join you are put on your enroller's outside right or left leg. They will continue work and other people above you on this leg will continue to work to build their organizations, thus you will have the next recruit to come along placed underneath you, and the following one placed underneath them, etc. When I first joined in my binary system within a couple hours someone was under me and in a day or two, two more were under them. So I was already building up business volume before I even started marketing! Another benefit is that spillover sells. If anyone has tried a home business before they know how challenging it can be to get moving at the start. So having others working to build your organization for you is powerful incentive to get started and to get started fast, there is a genuine reason for people to want to join before the next person...they want to be above them! Binary MLM ChallengesrnThe biggest challenge in the binary system is organizing yourself to get the biggest payout. Most companies either only payout the commission percent on your weaker leg, or payout part of the stronger leg as well, but only when you've hit a certain volume in your weaker leg. This is to ensure that everyone is actually working on the business, not just sitting back expecting their enroller to just build the business for them. You need to ensure you fully understand your company's comp plan and exactly what it will take to get paid. This will also play into your placement strategies and ensure you start building the right way. It can sometimes be frustrating to watch one side of your organization grow at a rapid rate due to the people above you, and have to struggle to fill the other side. But once you get some momentum going in your weaker leg, (i.e. get several recruits who are actually working themselves), you will see that speed pick up. Try to focus on attracting quality recruits into your business and setting them up for success, a little bit of momentum can mean a rapid growth in both your organization and paycheck. While numbers are important, the biggest payout can always be achieved when you have helped other to grow their businesses quickly as well...making your organization bigger and bigger in the process.