posted on: 5/29/2011 12:18:50 AM EST
MLM Compensation Plans – The Auzzie 2-up Plan
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In my opinion, Auzzie 2-up’s are the worst types of MLM Compensation Plans.

Here is how they work. They are usually tied to a big ticket item that is a one time sale. As the name implies, your first two sales roll up to your sponsor. What's wrong with this picture?

However, never fear, you get to keep the commissions from the next two. When most people in MLM only ever sponsor 2.5 people, how is this supposed to work?

Sure, you will get the first two sales from the 2 people you got into the deal, but where is the residual income? The answer is, there is none. If you want to get paid, you have to either sell more or get your front line people to sell their two. Of course, there is no coaching going on here. There is no incentive to coach someone when you stop making money from their sales after only two. Recruiting is the only way to really keep money rolling in.

Ask yourself this question when examining MLM Compensation Plans. When the recruiting stops, what happens to the income? If income stops when recruiting stops, you are in an illegal program and it will get shut down eventually.

For more information visit MLM Compensation plans page of my main blog, Bill’s BIG mlm Blog, at the link provided.

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