Australian X-up Plan / Pass Up Plan

Key Terms in Australian X-up MLM Plan

• X-Up System: Refers to the number of sales or recruits that are passed up to the sponsor. For example, in a 2-Up Plan, the first two recruits or sales made by a distributor are passed up to their sponsor.
• Pass-Up: The process of transferring commissions or recruits to an upline (sponsor) as per the X-Up structure. This is a foundational concept of the plan and incentivizes teamwork and leadership.
• Sponsor: The distributor who recruits a new member into the plan. Sponsors receive pass-ups from their downline according to the X-Up rules.
• Downline: The network of distributors recruited under a distributor. After the initial pass-ups, distributors retain earnings from the efforts of their direct recruits and their subsequent networks.
• Upline: The distributors higher in the hierarchy who receive the pass-ups from their downline. Uplines benefit from both direct and indirect pass-ups.
• Personal Retention: The recruits or sales that remain directly under a distributor after the initial pass-ups are completed. These retained recruits form the foundation of the distributor’s network.

How the Plan Works

The Australian X-Up Plan works on the principle of passing up a set number of recruits or sales to the sponsor before a distributor starts earning directly from their own recruits. This system fosters collaboration and ensures that sponsors benefit from helping their downline succeed. After fulfilling the pass-up requirement, distributors keep the commissions and recruits from their subsequent efforts, building their own network and income

Example:

• Alice joins the Australian X-Up Plan and recruits Bob, Charlie, and David into her team.
• According to the plan’s rules (e.g., a 2-Up Plan), Alice must pass up her first two recruits to her sponsor, Emma. This means:
• Bob and Charlie are passed up to Emma, and all commissions from their sales or recruits go to Emma.
• Alice retains David as her direct recruit and starts earning commissions from David’s sales and recruits.

This pattern is customizable based on the plan’s structure. For example, the first two recruits may pass up to the sponsor, the next two may go to the distributor, and the subsequent two may pass up again. The specific numbers can vary depending on the company’s configuration of the Australian X-Up Plan.

What Happens Next:

• Now, David begins recruiting others. He also follows the same 2-Up rule, meaning his first two recruits are passed up to Alice.
• If David recruits Eve, Frank, and Grace, the first two (Eve and Frank) are passed up to Alice, while David retains Grace and starts earning directly from her efforts.
• Meanwhile, Bob and Charlie, who were passed up to Emma, begin building their own teams. For example, Bob recruits Hannah and Ian, passing up his first two recruits to Emma as per the plan’s rules. Similarly, Charlie starts recruiting and follows the same pass-up process, further contributing to Emma’s network and earnings.

Cycle of Growth:

• Once Alice fulfills her pass-up requirement, she no longer passes any recruits to Emma. All future recruits and their sales remain under Alice, allowing her to grow her network and income exponentially.
• Similarly, David, once he fulfills his pass-up requirement, will retain all future recruits and start building his own independent network.

Key Points:

• The pass-up process ensures that uplines (like Emma) benefit from helping their downlines (like Alice) succeed.
• Distributors (like Alice) are incentivized to recruit and mentor new members, as they eventually retain their recruits and commissions after completing the pass-up phase.
• Over time, as each distributor builds their team and supports their downline, the network grows exponentially, creating opportunities for residual income.

This cycle of recruitment, pass-ups, and retention encourages teamwork, mentorship, and growth within the system, ensuring success for both the distributors and the company.

Now, let’s consider how commissions work

Refereal Commission

 In an Australian X-up MLM plan, Referral Bonus or Sponsor Bonus typically refers to a commission or bonus earned by a distributor when they personally sponsor (recruit) someone into the network. These bonuses are usually a one-time payout given to the sponsor for successfully enrolling a new member into the system

 How it Works

• When Alice recruits a new distributor, she earns a Referral Bonus for sponsoring that person (for example, Bob).
• The amount of the referral bonus may vary depending on the company’s compensation structure and could be a fixed amount or a percentage of the recruit’s initial purchase or enrollment fee.

Referral Bonus Amount

• The Referral Bonus is often higher than the commission earned from lower levels because it rewards the sponsor directly for acquiring a new distributor or customer.
• It may be a flat fee (e.g., $50) or a percentage of the enrollment or first purchase amount (e.g., 10% of Bob’s initial purchase).

Example

• Example 1: Alice recruits Bob into the Unilevel plan, and Bob pays a $100 enrollment fee. Alice might receive a Referral Bonus of $20 (20% of Bob’s fee) as a reward for bringing him into the system.
•  Example 2: If Alice recruits Bob, who then buys a product worth $500, Alice could earn a Sponsor Bonus of $50 (10% of Bob’s product purchase).

Purpose

• Referral Bonuses are intended to encourage distributors to actively recruit others into the MLM program and grow their network.
• These bonuses are typically structured to be more lucrative than ongoing commissions from deeper levels to provide immediate financial rewards for successful recruiting.

Pass-Up Commission

Pass-Up Commission is a unique feature of the Australian X-Up Plan, where the commissions from a distributor’s initial recruits or sales are “passed up” to their sponsor as per the plan’s rules (e.g., 1-Up, 2-Up).

How It Works

• When a distributor joins, their first few recruits (e.g., 1 or 2, depending on the plan) are passed up to their sponsor.
• Along with the recruits, the commissions generated by their initial sales are also passed up.
• After completing the pass-up requirement, the distributor retains future recruits and commissions.

Pass-Up Commission Amount

The pass-up commission is typically calculated as a percentage of the sales or purchases made by the passed-up recruits. For instance, if the commission rate is 10% and Bob generates $1,000 in sales, Emma receives $100 as the pass-up commission.

Example:

 Alice recruits Bob and Charlie, both of whom are passed up to her sponsor, Emma. The commissions generated by Bob and Charlie’s efforts go directly to Emma.

Purpose

The purpose of pass-up commissions is to incentivize sponsors to mentor and support their downline. It fosters teamwork, ensures fair rewards for the efforts of uplines, and encourages distributors to build and grow their networks effectively.

Direct Commission

Direct Commission is earned by a distributor from the sales or purchases made by their personally retained recruits after fulfilling the pass-up requirement.

How It Works

• Once a distributor completes the pass-up requirement (e.g., 1-Up or 2-Up), they start earning commissions directly from all future recruits.
• These commissions are calculated based on the sales volume generated by the recruits retained by the distributor.

Direct Commission Amount

Direct commissions are usually a percentage of the sales volume generated by the distributor’s retained recruits. For example, if the direct commission rate is 10% and David generates $2,000 in sales, Alice earns $200 as her direct commission.

Example

 After passing up Bob and Charlie to her sponsor Emma, Alice recruits David. Since Alice has fulfilled her pass-up requirement, she earns direct commissions from David’s sales.

Purpose

Direct commissions reward distributors for their ongoing recruitment efforts and encourage them to grow their network actively. By allowing distributors to retain earnings from their recruits after fulfilling the pass-up requirement, the system provides a fair and motivating incentive for continuous network expansion.