Monday, May 12, 2008

MLM Comp Plans - The Beloved Aussie Two-Up

In MLM Comp Plans - The Stair Step Love Affair we saw what MLM companies find so attractive about the stair step breakaway compensation plan. Now let's see why some network marketing companies wish they could all be Aussie Two-Ups.

How an Aussie Two-Up works.

Let's say Bob is building his team with this comp plan and he recruits Sue. Sue's first two recruits go directly to Bob along with the commissions earned by Sue's sponsoring efforts. From there on Sue can start to earn a check and fill her own downline group in the same way.

So why are companies wall-eyed over the Aussie Two-Up?

The Big Ticket
Generally there is only one product or service with an extremely bloated price tag. (ex.: a marketing course sold for $2,000, and the company keeps half of that)

One-Time Sales
There's no pesky residual income to pay out.

Companies using an Aussie comp plan lure prospects in with large sales commissions, but they usually offer only one very high ticket, one-time purchase product. And since few people recruit more than 2.7 team members in their network marketing career it's easy to get upside down trying to work with this type of comp plan.

Do you live to recruit? No worries mate. Go beat the bush and have fun!

But if the Aussie Two-Up comp plan is too Out Back for you, then look for a company with a comp plan that won't kick you in the face and expect you to come back for more.

I appreciate you,

Bill Tessore

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