This refers to a structure where the first two people you recruit are “given” to your sponsor, all the rest of the people you recruit are yours. Each person you recruit will in turn give you the first two people they recruit, keeping the rest for themselves.
Graphically, this does not create a matrix, but only something that resembles a front line. The front line keeps growing, as you recruit new people, and as they people you recruit give you their first two recruits.
In order to prevent people from strategically picking weak prospects to give up (keeping subsequent strong prospects for themselves), there may also be an over-ride mechanism, where you get some kind of bonus on whatever structure is built by the people you give up.
MLM Compensation Plans - The Australian Two Up
November 22, 2005 by Ty | 5 Comments
In Network Marketing Compensation
Mike on February 26th, 2006 at 10:51 am
Interesting,
As long as I have studied compensation plans, I have never seen a company last for long who uses 2-up plan. This is so for many reasons, most are a one product one purchase deal of little value, so in essense, a money game where they tend to market it by saying, this is not an MLM. LOL
The bottom line is this, show me one successful company who uses 2-up system. Since I first saw it back in the 80’s, and many have tried it, I still cannot find any company which has used it last, why is this? Well, for those not familiar with network marketing, it is because most don’t even sell or recruit one person, never mind the required three in order to get paid. With so few who can sell even one, this is a plan of attrition, and one doomed to fail.
Good luck, Mike
Roger A Stockburger on July 9th, 2006 at 12:17 pm
I’m an aussie living in Queensland’s Gold Coast, never seen any company using this kind of plan !!
Carol West on February 24th, 2007 at 3:01 pm
I am from South Africa and I have recently joined a business opportunity with a 2 up compensation plan. It is linked to one of the leading leisure companies in the world with a fantastic product. The very nature of the product will ensure that it goes on and on. The exciting part for me is that they have recently opened in Australia.
Carol West
thejcwgroup@gmail.com
Phone: + 27 11 462 9756
nsikan on December 8th, 2007 at 5:02 am
please i’am looking for a new mlm business because i’m into dcc but dcc is little bid delay now so now i’m looking for new one.
ed on April 20th, 2008 at 2:49 pm
CoastalVacationClub has been around 25 years. The 2 - up compensation plan has been used by them for 14 + years. They have a valid product that I have personally used. I have stayed in premier hotels for $12 per night and luxury condos at $266 for an entire week using the product. The 2 up plan has brought substantial income to me and my family over the last several years. Unlike mlm, I have never had to recruit friends or family and we actually have a stand alone product that I have marketed to businesses and individuals.