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Zero-up - Replacing 1-ups and 2-ups in Direct Sales

By: Susan McLaughlin

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Direct Sales is the most profitable way to enter the home-based business arena but there are significant differences in the direct sales compensation plans. Selecting the right direct sales product and company is crucial to long-term success of the individual and of their affiliates... the compensation plan features can make or break an individual's future success. Traditionally there have been 1-up and 2-up compensation plans. However, now there is a new alternative... the Zero-up plan.

Why is direct sales such a good option? With traditional MLM companies the new affiliate is required to bring in large numbers of people to just make a modest income every month. There is also usually a monthly autoship required to maintain sales status and sometimes even a quota before the member earns money. This makes it difficult for the new affiliate to get started and maintain their status. The dropout rate is significant and members who don't have a pre-existing downline often find themselves treading water - just working to replace the dropouts! Direct sales is a model whereby the member gets paid from the new affiliate up front and then the company gets paid. However, not all direct sales compensation models are created equal!

In the 1-up and 2-up models, the first and/or second sale by the new affiliate is passed up to their sponsor as qualification. This is usually billed as a very powerful model because once the member is qualified, each new line potentially owes them sales forever. It would be powerful in a perfect world .. if only new affiliates were able to get the qualifying sales! But, unfortunately, 95% never qualify! They either don't know how to market the product or they simply run out of marketing money prior to getting into profit!

Now there is a new option in direct sales ... the Zero-up model has recently been introduced. In this plan the new affiliate doesn't pass up any new members - he/she makes money starting on the very first sale.

Although at first glance this would appear to be less attractive than the 1-up and 2-up plans long term, the Zero-up model has addressed this by providing override bonuses for the second level sales...to infinity! The result is that the affiliate is rewarded for sponsoring throughout the life of that new member.

For example, in the 1-up, if a person sponsors a good recruiter they only are rewarded by their first sale and often this creates distance and breaks the team atmosphere. On the other hand, in the Zero-up, that person who brings in a good recruiter is rewarded for every sale that new member makes for life which strengthens the team atmosphere.

So, Direct Sales is a very profitable home business model but there are inherent problems with the 1-up and 2-up plans. However, with the Zero-up plan, the new affiliate starts earning right away which supports their marketing and allows their income to continually increase over time.

The Zero-up is every powerful plan... a revolutionary concept in the world of Direct Sales!

Article Source: http://depositarticles.com/

Sue is a veteran Internet Marketer with past experience in corporate management & business ownership. The Zero-up plan was introduced by the Perfect Wealth Formula .. go see at www.magiswealth.com Sue is also a member of a group of like minded individuals working toward financial success in home business... www.magishomebusiness.com

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