An Australian two up, or Aussie 2-up is any programme where you pass up your first two sales and personally sponsored distributors to your upline. Hence the “two up” – I’m not sure where the “Australian” part comes in.
That means your first two personally sponsored distributors are now personally sponsored by your upline, putting them in direct competition with you, and giving your upline the leverage. You derive no benefit, it’s only after you have made your first two sales, you can begin to benefit from your own hard work.
Aussie 2-up programs are always information products or expensive travel packages that cost $1000, $5000, $10,000 even $25,000. They are always one-time sale items. There is no residual income because they are not consumable products. There is no monthly autoship, no repeat custom.
You will never sell to the same customer again, so you’ll always be chasing new customers. So people in this type of pay plan are actually competing with each other for product sales.
Wait a minute, $5,000 – $10,000 for an information product package and you give up your first two sales? Hmmm… Can you say SCAM? There may be a few legitimate companies out there that use the Aussie 2-up compensation plan, but unfortunately they are amongst a sea of scams.
Here’s how the 2-up scams work…
Typically the scams operate at arms length from their distributors. The company does not deal directly with distributors or customers. The existing distributors do all of the book keeping. Typically, a sponsoring distributor would require a new recruit to pay cash for a $2500 package, yes cash (a BIG red flag), to him and then he would personally keep $2000 and send $500 to the company.
This is so when the time comes for the scam to be shutdown by federal agencies, the scam operators can skip town and say they didn’t have anything to do with any customer. This directly puts the responsibility on every distributor, who would take the full brunt of the law for promoting the scam. Very, very slick.
The scams will package up information that you can find at your local library or on the internet for free, or package up some dubious offshore seminar, or travel vouchers that you can find for free.
The Aussie 2-up is only suitable for the “sponsor monster” types and those that can sell. Only people who have no problem closing somebody on an information package that costs $2500 can succeed. Unless you’re a professional sales person and you have no issues in hard selling, doing just about anything to get a sale, you can’t be successful in an Aussie 2-up. It’s 100% against the nature of most people.
Statistically, the average network marketer will only sponsor between 2 to 3 people in their entire network marketing career. So if the first two sales are going straight to the upline, it’s obvious that most people who participate in these schemes are destined for failure.
On your first two sales, you may get great support from your upline. He’s right here for you showing the tricks of the trade and guiding you step by step. But after you make your first to sales? Woosh, he’s gone. You’ve broken away and he knows he’s made all the money of you that he can. He no longer has any vested interest in helping you.
Don’t risk it with the Aussie 2-up. It’s been proven time and time again that team work, coaching and a product that has long term residual value has always lead to long term MLM success.
To your MLM success,
Wayne Wu
P.S. I would love your input! If you have an opinion that would contribute to this discussion, please leave me a comment below.
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