Are Direct Sales programs such as EDCGold, Coastal Vacations, Emerald Passport and others that use the 2-up (or 1-up for that matter) compensation plan becoming "dinosaurs" in the industry? It is possible that this is exactly what is happening with the introduction of newer compensation plans providing income to the new member on the very first sale.

The Australian 2-up plan which is the basis for the more recent 1-up and 2-up plans has been used in online programs for years. Most Direct Sales programs (such as EDCGold, Coastal Vacations, Emerald Passport, etc.) used this type of compensation plan until recently. It is often advertised as a very powerful program but there are hidden problems for the new member. The extended amount of time without income at the start has always been the major issue with this plan.

There are only a few people who every succeed with these types of plans - of course there is always that exception that fuels the sales in every one of these programs. In truth, about 95% plus fail because they don't ever get qualified. The people who succeed at these types of programs are often the ones that have succeeded at other programs and moved on... not very often the "new marketer".

There is a whole new generation of Internet programs that strive to fix the major problems encountered with 1-up/2-up plans. These programs (such as Perfect Wealth Formula) pay the new member for every sale, including the first. As a result, the popularity of the traditional 2-ups like EDCGold, Coastal Vacations, Emerald Passport, etc. appears to be declining. The residual income that is promised from the paylines in 1-up/2-up programs just isn't a reality for most members, new and old.

The 2-up plan can be lucrative ... if it can be duplicated throughout the membership. That means that every new member gets qualified and continues to get additional sales who also get qualified. Then you truly have the residual income working. This rarely happens which means that successful members (people making money) of EDCGold, Coastal Vacations, Emerald Passport, etc. and other 1-up/2-up programs must continually recruit ... forever. This fact means that the professional marketer with the skills, list and marketing budget will always have an edge over the regular person.

Online programs get a bad name because of the fact that people are sucked into the claims of these programs and then fail. In fact, the cards were stacked against them from the start with these comp plans.New programs, such as the Perfect Wealth Formula have created compensation plans that help to solve the major issues created by the 1-up/2-up model. These plans actually allow the new person to make money on the first sale as well as residually

These give that new person a chance to actually be successful without having a huge bankroll to spend on startup. After all, home business is supposed to be "less" expensive to get started in! The playing field has been leveled and new people, who are flocking to the internet at increasingly rapid speeds, are happy to be making money for themselves as well as for their sponsor. This actually recreates the team like feeling that is prevalent in MLM with a far better income potential.

For obvious reasons, the popularity of the newer "income on first sale" plus residual models is rising. New members can see the benefits and even veterans who have been struggling in programs like EDCGold, Coastal Vacations, Emerald Passport, etc. can see that this is a better way... even if they can make the money in the 2-up model that doesn't mean their new members will be successful and ... there goes the residual. Some of these veterans are seeing income at much higher levels for the first time since they started on the internet.

So, are EDCGold, Coastal Vacations, Emerald Passport, etc. dinosaurs? Not yet. But, judging by the numbers of ex-members who are tired of throwing away time and money only to make their sponsors rich and are looking for something better, the "world is changing". There is finally a different option for the average guy just wanting to make an extra buck!