There is a continuing debate about ‘Australian Two Up’ compensation plans or the ‘aussie two’. Why there is still a debate I don’t know because the answer seems obvious to me. This article will help you decide what you think about the ‘australian two up’ compensation plan used by Liberty League International and many other companies out there.
The Basic Idea
In general a ‘australian two up’ or ‘pass up’ program like Liberty League International will cost a person $1000-$15,000 to start their business with the company. There are many different packages to choose from so the cost is going to depend on which one you choose. Now that you’ve started your business you will be promoting the same packages you chose from to others so they can start a business of their own.
The ‘australian two up’ pay structure Liberty League International uses works fairly simple, but usually seems confusing to people because giving away sales doesn’t make sense to them. Here is a simple example using simple numbers. Liberty League International’s program, like any other ‘two up’ or ‘pass up’ program, requires that you give up your first two sales to your ‘sponsor’, meaning the person who introduced you to the business.
Using the sale amount of $1500 in this example means that it costs you $1500 to start your business. You are then taught some marketing methods to help you promote your new business. When you make your first sale you give up or ‘pass up’ your sale to your sponsor. Kind of a thank you for teaching me gift I guess. This means that not only your first commission but also the person you brought into the business is now enrolled by your sponsor. This means that everything that person does now benefits your sponsor and not you. This process repeats itself with the next person you bring into the business who also benefits your sponsor.
So, you have spent $1,500 to start your business and depending on what marketing methods you chose, spent another lets say $500 for ease of math, for a total of $2000. Your first two sales with a commission of $1000 a piece have been given to your sponsor which would have paid for your expenses and also given you two new business partners to leverage your time and financial earnings with. In other words you would have been in the black instead of the red still and have business partners already if you didn’t have to pass your sales up.
The Pros of the Liberty League International ‘Australian Two Up’ Structure
Don’t get me wrong, if done right by a seasoned marketer, the ‘australian two up’ program can become very lucrative. Here is where the debate comes in. Some people (seasoned marketers) don’t mind the idea of ‘passing up’ their first two sales because of how your business partners multiply after you ‘break away ‘ from your sponsor. For example, the next sale you make stays yours along with the first two sales your new business partner makes also. So its like getting 3 sales for the price of one. Not only that but the two new partners that have just been given to you need to ‘pass up’ two sales of theirs to you also which means 4 new sales from them. The idea is that each partner you introduce turns into 3, then 4, then 8, then 16 and continues to expand exponentially all without you doing the foot work. Its a great idea if it continues to grow perfectly like that.
The Con’s of Liberty League International’s ‘Australian Two Up’ Structure
The Liberty League International ‘two up’ plan makes it difficult for the newbie because you ‘break away’ from your mentor who you are depending on for training. Your mentor now has no financial benefit in helping you. In fact you are his competition now. So, the first problem is he will probably not have ‘the time’ to help you since he has other partners that benefit him financially to help (meaning the ones YOU got for him). The second problem is he probably doesn’t want to give you much help since you are his competition now. In fact, he probably only helped you out just enough in the beginning to make sure you got your first two sales (which go to him anyway) and didn’t give you his best marketing techniques because he knew you would be his competition eventually. This doesn’t create teamwork, and teamwork is the backbone of creating any successful business but especially in network marketing.
Conclusion for the ‘Australian Two Up’
For seasoned marketers Liberty League International’s compensation plan may work well. But, the average person, and even seasoned pros, need teamwork to create a solid residual income. There are plenty of programs out there that don’t ‘pass up’ sales or have ‘break away’ and promote team synergy by rewarding you and your sponsor when sales are made. This is not only good financially but it also causes your mentor to truly teach and guide you because your efforts will continue to benefit him. And that is really the most important step in building your business, continued mutually beneficial teamwork.
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