MLM Comp Plan Ups & Downs - The Aussie 2 Up

In my previous post "MLM Comp Plan Ups & Downs - The Matrix" we examined the advantages and disadvantages of that type of network marketing compensation plan. Now let's see what we can learn about the Aussie 2 Up.

In the Aussie 2 Up compensation plan you get to give away your first two recruits to your sponsor. Then she gets paid the commissions for the work you just did. Most entrepreneurs join a company with an Aussie 2 Up comp plan for it's big up-front profit commissions.

WARNING: Three Critical Questions You Must Ask About Any Compensation Plan

1. How much volume do I need to make a given income goal?
2. How many people do I need to make a given income goal?
3. What do I need to do to make a given income goal?

Those considering building with such a comp plan should be aware of the down side of the Aussie 2 Up so they do not get blindsided. Let's take a look at the good and the bad of the Aussie 2 Up.

The good side of the Aussie 2 Up.

1. Ideal for sponsor monsters: since they have the Green Lantern ring, the power suit, etc. they do well with this plan because they recruit lots of people who give their first two recruits up to them. So the sponsor monster can make lots of money.
2. It's shark territory: shrewd people will place duds or fictitious names into their first two positions so that when their next two positions come along they can place super recruiters there & be in fat city.

The bad side of the Aussie 2 Up.

1. Big ticket start-up: often from $2,000 to $20,000.
2. Stand-alone product: no back end sales are being made for residual income.
3. Works against industry averages: Average network marketers without a system for duplication sponsor 2.7 people in their entire career. That average person then gets paid on 0 to 1 person they place into their downline.
4. Treachery is a two-way street: your sponsor may help you build so he can take your two best recruits (then abandon you), or you can give him your dog and cat, or your toddler twins … and then work with real builders.
5. No residual income: no sponsoring = no income.
6. Against the numbers again: about 0.01% of the world's population can make an Aussie 2 Up work.

Building an Aussie 2-Up comp plan is a back-breaker … even for the 15% of the population that like it. Oh, and you can forget about duplication.

An extremely high ticket one-time-order product with this plan is the norm. Back end products for residual income don't exist.

The only equality in an Aussie 2-up comp plan is the chance that either the recruiter or the recruit can cheat the other out of their due commissions by manipulating the plan's flaws to their own advantage.

Can you recruit at will? No? Well, then avoid the Aussie 2 Up compensation plan like the plague. The numbers are just not in your favor.

I appreciate you,

Bill Tessore