Wednesday, October 29, 2008

Global Resorts: Perpetual Leverage v. 2-Up

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.

So once you pass up your two sales, you're independent and never need to pass up any more. All of the commission from your sales goes to you forever and ever. But this is where it gets tricky.

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.

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.

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 this is where Perpetual Leverage is completely opposite. You never make a challenger because you build a team and never release anyone. That means that if you have eight personally sponsored members, you will have eight Web sites out there working, generating money for you. Why? Because your commission is attached to theirs. If they make $500, you make $500 also. Even if you stop marketing your memberships entirely, you will remain attached to your team, bringing you a passive income.

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