I really did not consider the many different compensation
plans there were for a program until I started
investigating selling big ticket items. Coming from more of
an affiliate marketing and network marketing point of view
I had never heard of pass up plans.
Sometimes they are called 1 Up, or 2 Up, and so on. So what
are pass up pay plans and how do they work.
With a pass up pay plan you pass up a set number of sales
to your sponsor before you start keeping the money for
yourself. Your sponsor has already passed up the required
number so he makes his money now on you plus any of his own
sales.
With a 2 Up this type of pay plan basically means that you
will join a business opportunity that has a payment plan
where you will make your first two sales but you won't get
the money for them. Your first two commissions will go to
the sponsor that is above you. Then you will start making
commissions on your third sale and all of the others after
that.
There are a couple of benefits to the pass up pay plan. The
first benefit is that it is designed to get sponsors
involved in their team's efforts. The more help they
provide the people under them the more money everyone will
make. So if they want to get those first two commissions
they will need to teach them how to make the sales.
Another benefit is that once you know how to make the sales
and you are earning your own commissions, you will now be
the one that will make the first two sales on anyone that
comes into the business under you. So you will need to
teach others what you learned so you can benefit from their
first two sales.
One of the negatives to the pass up pay plan is that not
everyone will help the people under them. Some people want
the money but don't want to help others. So you have to
make sure you find someone who will help you, if they won't
then you can contact other sponsors to see if they can help
or contact the company for help.
Another negative is that once a person becomes qualified
they are basically in competition with you as you do not
earn money on any of their sales anymore. For this reason
people who are successful with the pass up programs are
very good at direct selling and have to keep selling to
make money.
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