2006-08-07T12:26:00.000-07:00

The 1StepSystem compensation plan is generally what's known as a 2-up. Essentially what this means is that a person's first two sales role up to the mentor or sponsor.

So if Mary makes a sale to John and then John turns around and makes three sales - to Joe, Beth, and then Thomas - the commission payout is as follows:

$1000 to Mary (John's sponsor) for John's first two sales to Joe and Beth

THEN....

$500 to John for his third sale to Thomas.

Now let's look at where the leveraging power of a two up comes in. Let's say Thomas is a natural and goes to work fast. He gets his first two sales in the first week, to Ian and to Diane.

What happens then is....

John receives $1000 for those sales ($500 each) because those are Thomas' first two sales.

Let's say that Thomas keeps rolling on, but he is also a great mentor. He helps everyone that joins him assisting them in learning how to market the 1StepSystem. So in the next 30 days, both Ian and Diane get their first two sales.

It's John's lucky day and here is why. Everyones' first two training sales (that come as a result of Thomas' first two training sales) role up to John. All the way to infinity.

So Ian and Diane have made two sales each. This is what John receives....

4 Training sales total x $500 = $2000

So, in total, John has received $1000 from Thomas' first two training sales and $2000 from Ian and Diane's first two training sales.

What's powerful about this is that John himself earned only $500 off of his own efforts from the sale to Thomas. The additional $3000 came with no effort of his own.

This situation can happen with every personal sale (except for your first two training sales). So, there is some serious upside potential with this type of compensation plan.

But is there a downside?

Yes and No. It depends on how you look at things. Are you a glass half empty or glass half full kind of person?

The only drawback with a 2-up compensation plan is that you have to give up your first two sales. This delays your cashflow.

Studies have shown that the avergage person will enroll or make 3 sales. This means that in the 2-up, the average person can succeed and make at least their initial investment back. Once that first sale is made, it usually ignites an "I can do this!" fire and more success follows. This is probably the main reason Rod Stinson (the 1StepSystem co-creator chose it).

So what are my final thoughts on the 2-up compensation plan....

The 2-up is the 2-up. It is what it is. I like this compensation model very much for generating up front cash flow. For the 1StepSystem it's perfect. A $500 commission is large and can dramatically impact someones financial life in the short term.

I do not like a 2-up for a long term residual business. There are other types of compensation plans out there that you can have more control over.

HERE'S THE BOTTOM LINE!

The 1StepSystem (and the 2-up compensation plan) is like anything else in life. The results you get out of it are directly proportionate to what you put into it. If you're willing to learn and receive training, and willing to put forth a CONSISTENT effort, it doesn't matter what the compensation plan is, you'll succeed.

1StepSystem Compensation Plan