Friday, October 31, 2008

Global Resorts Network: Perpetual Leverage vs. The 2-Up System

By Bob Matthews

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.

Basically the Aussie 2-Up system requires you to pass your first two sales up to your upline, and then you're free to make money for the rest of your membership.

Basically, after passing up your two sales, you're autonomous--and you never need to give your commissions away again. The entire commission from each of your enrollments goes to you for as long as you continue to sell. Good so far--now for the tricky part....

Right when you free yourself to earn money, you depend on your downline to produce it by sending up their "training" sales. After their two sales, however, they turn into your competitors.

So what's really going on? What's happening is that you are expending valuable time and energy training your members the skills and wisdom that you had to learn the hard way so they can earn their pass-up sales--only to see them separate and challenge you for future 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.

Well, everything's good as gold until they receive their director's releases. Then one morning as you're checking your Google PPC's, you find that they've altered their PPC ads slightly, and are now bragging about how they are better than the other guy-you. Bam! They are now your competitors.

o you follow me? The Aussie plan results in you putting forth great amounts of effort to learn new skills and train your new members to become your competitors. That's like beginning with a complete cake (the marketplace) and constantly slicing it into tinier and tinier pieces. Who benefits from that scenario? No one.

Now with Perpetual Leverage you never make a competitor. You build a team, and you never pass anyone up. So if you have ten personally sponsored members, for instance, you will have ten websites working, generating $1000 commissions for you because your commission matches theirs. (If they make $1000, you make $1000 as well.) And even if you stop marketing memberships, Perpetual Leverage allows your team to remain "attached" to you, so you can earn a passive income.

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