There seems to be an unending debate about the validity of pass-up programs, also known as the "Aussie Two." This method of compensation appears to be widely used in "top tier" marketing programs such as Liberty League International. But how does this Aussie Two-up work and can it actually help you as an internet marketer?
A typical pass-up program such as Liberty League International will cost you anywhere between $1000-$15,000 or more to join. The initial start-up cost will depend upon the company and the particular packages they offer. When a person starts in a business like this the main goal will be to market the products or business package and teach others to do the same.
But that is where the simplicity ends and the confusion begins. Liberty League international requires each new member to "pass up" their first two sales to their sponsor. What this means is that when you do manage to make your first sale, you will then be required to give up or "pass up" that sale and commission to your sponsor. The person who you made your first sale to will then become enrolled by your sponsor and not yourself and you will have nothing to do with their future success in the business. You will repeat this with your second sale, passing up the sale and commission to your sponsor, so that work you did to sign up your first two members will be of no benefit to yourself directly.
So because of the fact that you passed-up your first two Liberty League International sales you are still behind instead of what could have happened had you been able to keep those first two sales to make your investment back!
The next step in a pass-up program is that after you have passed up your first two sales, you then "break away" from your sponsor and are now qualified to keep your next sales. One of the main challenges with this program is that if you are new to this industry and in need of training to get started and have success, your sponsor will no longer be motivated to help you because they will no longer benefit financially from helping you to succeed. Of course they will reassure you that they will keep helping and coaching you, but like any other business person they will put the majority of their efforts into the activities that will give them the most financial return!
So as you continue you will get to keep the first two sales of everyone that you bring into your team. But what if one of your new people happens to be extremely motivated like myself, selling an average of one package a day or more? You will still only receive the first two of that person's sales instead of other compensation plans which would be able to pay you on each and every sale that your team members make!
While Liberty League International is not a scam, it is the sort of program that only truly experienced marketers are likely to succeed with and which would be very difficult for any newcomer to the industry. I recommend finding a program with a business and compensation structure that encourages teamwork where you will be continually supported and able to achieve significant success with phenomenal training and support!