The Aussie Two Up (not to be confused with the popular Australian gambling game) is a strange compensation plan that requires you to give away your first two sales to your sponsor.  As most people only sponsor two or three people in their lives, that means you will not be working with or benefiting from your best or only partners.  Imagine passing your brother or best friend on to a stranger!

The Aussie Two Up is always associated with a one time sale of an overpriced product usually available free elsewhere.  There is not one legitimate company that uses this plan.  They are all scams and some of the worst in the MLM industry.  Michael Dlouhy

Here’s a definition of the Aussie Two Up Compensation Plan with selected comments from Rod Cook of MLM Watchdog.  Read his complete article here.

  • An Aussie 2 Up takes the first two people out of a Newbie’s warm market.  That is 2.3 – 2.6 people, leaving no market!
  • An Aussie 2 Up is for strong closers for a $1200+ Pop.  Almost no beginners can sell a package at this rate.  The newbie loses their money.
  • Most Aussie 2 Up’s have a $5000 – 6000 seminar behind a $1200 – $1500 package on the front end.
  • Aussie 2 Up seminars are not Tony Robbins quality.  In fact they set people up for an offshore seminar at $12 – 15,000 for secrets that can’t be told in the U.S.  They are offshore so they can lie to newbies with freedom!
  • Material for most of the Aussie 2 Up’s is $1250 or higher, and can be found in public libraries for free.  Better stuff can be ordered from Amazon.  Coastal Vacations have about $36 worth of common travel certificates in the package.
  • [Ed:  $1250 is paid directly to the sponsor who sends in $250 to the company that remains at arm’s length.]
  • NOW comes the reason Aussie 2 Up’s get shut down eventually.  People want their money back. The salesperson got $1000 the company got $250.  The salesperson won’t give up the money.  The company can’t, so they say go back to the sales person.  Ha!  Fat chance for that money back!
  • As the number of people who want money back from the Aussie 2 Up increases,  so do the number of complaints to Attorneys General.  The AG’s finally whack the company and that is the end of it.  The Feds get in on some of the 2 up’s and right now the Global Prosperity 2-up leader is in Panama hiding out.
  • Unfortunately the Law doesn’t move fast enough.  The good part is most of them say 2 ups are not MLM (although legally they are) so the MLM Industry does not take a lot of heat!

Rod’s response to a reader’s question is so good we are reprinting it here …

“The goal of a good MLM compensation plan is that the new learning person get paid a fair amount or at least some on the first two sales. Good Companies have a battle cry “Get A Check In Their Hands.”

The neophyte’s appetite is whetted to work on helping those two sign up two. When commissions are STOLEN on the first two fruits of the newbie’s hard work they get upset!  They get wise enough to see that other companies are not thieves. They see WHO THE CROOKS ARE!

That generates complaints to Attorneys General and DA’s who look at the scumbag company for any error. That is why if you watch over a period of a year Aussie 2-ups are short lived!  Rarely does one make it past a couple of years.

An Aussie 2 up is also the worst violation of the MLM “warm market” referral and trust system that helps our wonderful industry bring in new blood.  If the first two persons that are helped in a business are stolen it also reflects on all persons involved.

Most companies that start with an Aussie 2 up (where the first two sales go upline) are broke, pitiful and money grubbing scumbags.

Why? All the money they collect from the first people that sign up goes to the company. No commissions paid.  The first two distributors the first level people in the company signup rolls up to the company and bingo – ALL that money goes directly to the company too!

Wow! What great company financing! But Wait! The money from the people that those two people sign up GOES TO THE COMPANY TOO!  And on and on!  Slick, devious and slimy!  That is why slimy startups use it!

It goes on and on – a self generating cash cow for the company. While it’s doing that, it is destroying the motivation of new Neophytes that join our good Industry with their hopes and dreams. I have a rule with 2-ups. Kill them!”

You can learn how to avoid scams like this.  Protect yourself and your friends and family by reading the free report ‘Big MLM Lies.’

Bob and Anna Bassett