Oftentimes home business newbies confuse two compensation plans--Perpetual Leverage and the Aussie 2-Up--for each other. They are not. Let me explain.



If you have heard about the 2-Up system, then you probably know that after you give your first two sales to the person who signed you up, you're free to earn a commission on every sale after that.

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.

Just as you're now free to make money, you need your downline to make money by passing up their two sales. The issue is that after they pass up their two sales, they become your competition.

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.

Now for the purposes of analogy, let's say you do some detailed research about Pay-Per-Click (PPC) advertising. After a several weeks of trial and error, you discover the perfect combination of keywords and link building. Success! Traffic is now flowing to your landing page and with that soon comes one sale and then another. You are very happy.

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.

In essence the Aussie 2-Up encourages you to exert tremendous energy figuring out how to beat your competitors and then teaching your new members how to do it, so you can make money before they also become your competition. That's insane. It's like starting out with a whole cookie (the market) and slicing it into smaller and smaller pieces. Where are the benefits in that? No where.

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.