Global Resorts Network: Perpetual Leverage v. The 2-Up
Perpetual Leverage and the Aussie 2-Up System are two very different compensation plans that are frequently believed to be the same by home biz newbies. Perhaps better than a definition of each is a quick contrast between the two. Let’s go.
First we’ll examine the Aussie system. If you’ve read about the 2-Up, you understand that you give your first two sales to the person above you, your director. After that you will never send your commissions to anyone–they will all go to you for as long as you make sales.
So really after you send your first two commissions to your upline director, you become autonomous and by no means will you ever have to send your commission up to another. Every commission that you make from that day forward is yours to keep. Okay, now for the tricky part….
It is exactly at this point where you are free to earn money that things get tricky. With your new found freedom also comes the realization that after your personally sponsored members pass up their two sales, they become your contenders.
Let me reiterate what happens: You put in a great deal of time and effort imparting your hard learned Internet tips and expertise to help them make their pass-up sales only to see them leave and compete for sales.
Let’s look at paid click (PPC) advertising. Now initially, we’ll assume, you have a few rough months learning the ropes of Google advertising. But after some searching, you master it: you come up with a great combination of keywords and links. Things are working beautifully. There you are at the top of the search results, pulling in the surfers to your capture page. With your increased traffic, you soon make one sale and then another and another after that. Things couldn’t be better.
So things are looking pretty good–good that is until your members make their first two sales. Then they receive their director’s releases which say to you, “Goodbye commission.” But that doesn’t occur to you yet. First you will have the enrapturing experience of finding out online that they have altered their PPC’s (which just beneath yours) to claim that they are far better than you-know-who–YOU! Zing–they are now your competition.
Do you see my point? In the 2-Up system you expend precious time and effort to train people to become your competitors. That’s like starting out with a whole pie (the marketplace) and continually slicing it into smaller and smaller pieces. Who makes out in that deal? No one.
Just the opposite is true with Perpetual Leverage. With Perpetual Leverage you never make a competitor because you build a team and never pass anyone up. So if, for example, you have five personally sponsored members, you will have five websites working to create income for you, for your commission is attached to theirs. (If they make $500, you make $500 too.) Plus, even if you altogether stop marketing memberships, Perpetual Leverage allows you to stay connected to your team, earning you a passive income.
Filed under: MLM