Yoli Founder Daren Falter explains “The Australian Two-Up Compensation Plan.”
How to Scrutinize an MLM Pay Plan
MLM Comp Plans PART IX:
The Australian Two-Up
By Daren C. Falter
The Australian 2-Up
The poor Australians are taking a 
beating for this when, in fact, it was us darn Yanks who introduced the 2-up plan in the United States in the mid-1980s. The 2-up, like the matrix, looks fantastic on paper, but when you put it into practice, it’s a disaster. The Australian 2-up is considered a gimmick compensation plan for reasons that are quite obvious to intelligent network marketers; no company has ever survived this plan. For this reason, we will not spend any time on this plan other than to describe what it looks like so you can avoid it. Only 2 percent of the companies I researched use the 2-up plan. The most common form of this plan is the 2-up, but there are also variations called the 1-up and the 3-up. All of these basically behave in a similar manor.
The 2-up works like this: you sacrifice your first two recruits to your upline sponsor. Then you start earning commissions on anyone sponsored after the first two. Since your first two recruits go to your sponsor, it stands to reason that the first two distributors sponsored by your first two distributors go to you. The Australian 2-up is famous for looking great on paper. It lures in thousands of suckers every year. However, even Australian network marketers can tell you that no one in their right mind would join a 2-up today.
Some consultant claim that the 2-ups go out of business because they pay too much up front instead of rewarding distributors in the long run. Others claim it’s because you have to give away your first two sales to your sponsor and most distributors will never recruit their third distributor, thus, they never get paid. Still other consultants argue that it’s not the plan itself but the type of products that are usually associated with 2-ups. Travel companies, financial training programs, tax reduction and avoidance training programs, and seminar MLM companies all with steep start-up expenses (usually $1000 and up) are famous for using the 2-up. They’re also famous for being here today and gone tomorrow. One of the most common models that has tried and failed at least a dozen times involves the purchase of a $1,200 audio series that teaches you how to avoid debt and invest your money offshore to avoid taxes. More and more travel companies are popping up every year utilizing the 2-up. If you encounter these programs, flee with your family to safety.
About the Author
Daren C. Falter is the author of the network marketing industry-wide best seller How to Select a Network Marketing Company. Daren has been a consultant to the network marketing industry for over 12 years and a student and participant for over 20 years. Daren has built downline organizations into the tens of thousands of distributors with several different companies. Daren is a popular convention speaker and trainer. You can visit Daren online at his blog at www.networkmarketingreview.com. You can also order Daren’s best-selling MLM book at www.networkmarketingbook.com.
Daren recently launched a new network marketing company, Yoli, Inc., near Salt Lake City, Utah. Daren and his four partners are excited to introduced the worlds most nutritious beverage using patented BlastCap™ Technology. For more information about Blast Cap Technology, Blast Caps, or Yoli, visit Yoli at www.prelaunchinsider.com.
Copyright ©2009 DC Falter Marketing, Inc. ALL RIGHTS RESERVED
ATTENTION: Breaking News!
Daren Falter will be launching a new company called Yoli. We will be introducing an incredible new nutritional formula in the form of a delicious functional beverage using Mikel Anderson’s patented Blast Cap Technology. The founders of Yoli are Robby Fender, Daren Falter, Rick Eisele, Corey Citron, and Michael Prichard. To find out more about Yoli Blast Cap Technology, visit www.prelaunchinsider.com
Kingsley Ennis is one of the few “hand selected” FOUNDING DISTRIBUTORS that are helping to launch this new company … and you can join him and one of the fastest growing teams in all of Yoli at the very beginning of this great network marketing adventure!
With a background in the Seminar Industry and 12 years of Noteworthy Success in Network Marketing Kingsley is the Author of “Split Second Marketing” & “Your Extreme Advantage”. You can listen to them FREE at www.usahomebusinessexperts.com
QUESTIONS ABOUT YOLI? Email kingsley@goyoli.com or call 717-303-5710.
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