I really did not consider the many different compensation plans there were for a program until I started investigating selling big ticket items. Coming from more of an affiliate marketing and network marketing point of view I had never heard of pass up plans. Sometimes they are called 1 Up, or 2 Up, and so on. So what are pass up pay plans and how do they work.

With a pass up pay plan you pass up a set number of sales to your sponsor before you start keeping the money for yourself. Your sponsor has already passed up the required number so he makes his money now on you plus any of his own sales.

With a 2 Up this type of pay plan basically means that you will join a business opportunity that has a payment plan where you will make your first two sales but you won’t get the money for them. Your first two commissions will go to the sponsor that is above you. Then you will start making commissions on your third sale and all of the others after that.

There are a couple of benefits to the pass up pay plan. The first benefit is that it is designed to get sponsors involved in their team’s efforts. The more help they provide the people under them the more money everyone will make. So if they want to get those first two commissions they will need to teach them how to make the sales.

Another benefit is that once you know how to make the sales and you are earning your own commissions, you will now be the one that will make the first two sales on anyone that comes into the business under you. So you will need to teach others what you learned so you can benefit from their first two sales.

One of the negatives to the pass up pay plan is that not everyone will help the people under them. Some people want the money but don’t want to help others. So you have to make sure you find someone who will help you, if they won’t then you can contact other sponsors to see if they can help or contact the company for help.

Another negative is that once a person becomes qualified they are basically in competition with you as you do not earn money on any of their sales anymore. For this reason people who are successful with the pass up programs are very good at direct selling and have to keep selling to make money.