Unlike any of the predecessors or subsequently designed compensation plans the 2-Up, in theory, pays a distributor in their downline to limitless depth. Some will say that the Binary pays to infinity but that is not true because of the Salary Cap. Many programs have what they call an infinity bonus which is very misleading as it only pays to infinity until someone else in your downline qualifies for it and cuts you off! I have seen (and designed) variations of the 2-Up, which are the 3-Up or the 1-Up, but essentially these are very similar plans and belong in the same family.

Although in my opinion this plan has incredible potential it is difficult for newcomers to understand. Therein lies one of the reasons why the 2-Up has not yet proven itself as an elite plan. To understand the other challenges of the 2-Up one needs to have, at least, a basic understanding of the "Mathematical Model".

Your (U) downline begins when number 3 starts sponsoring. The first two individuals which are sponsored by your third (3) must in turn also "pass up" their first two to you and this process has the potential to continue infinitely (unlimited depth).

Diagram 2 shows the growth of the 2-Up with each distributors 1st and 2nd sponsored distributor, starting with your third, continuing your downline. Every Distributor you sponsor after your third also builds your downline in exactly the same way.

Studying Diagrams 1 & 2 exposes another potential "weakness" of the 2-Up. You could go on sponsoring forever and all your upline will benefit from is the first two! Conversely, if the third person you sponsor brings 40 or 50 into the plan you only benefit from the first two. In an attempt to overcome this situation an MLM called Third Dimension introduced the "Cube". Instead of receiving 100% of the money available for one 2-Up Override why not divide it and create limited width as well as unlimited depth payouts. This is an EXCELLENT idea with the exception that the plan becomes fairly complex and is therefore difficult to communicate.

Applying the same "style" to the 2-Up would work in the same way and naturally that would still mean "passing up" two. With this concept if someone in the Downline (or Payline) goes wide that would ALL be part of the Bonus 1 Override in Diagram 3 (This was what Third Dimension referred to as the 2nd Cube with your Downline or Payline being the 1st Cube). Anyone in your Bonus 1 line going wide would start 'downlines' in your Bonus 2 and so on with a Bonus 3. Solving the weakness without removing the unbelievable potential of unlimited depth or infinity overrides.

Top of the second column

This is a problem that almost every 2-Up MLM is addressing with the "leg rotation". If distributors regularly receive overrides on the
first two or pass up legs then they will be less likely to try "cheating". Three completely different ideas exist for leg rotation.

The first idea, again from Third Dimension, was to rotate each distributors best two "legs" three times a month. Rotating the best legs 'in and out' of the "pass up" on 10 day intervals. A distributor in this program would not receive the 2-Up Override on their two best legs for two thirds of every month! The rotation being predictable also allowed distributors to hold product orders until the rotation favored them. Without getting into to many more details let me just say that this idea didn't work the way it was designed.

The second idea is what I call an orderly rotation. With this concept legs are rotated in order into the "pass up" for two time periods in a row. This system still allows for the holding back of product orders but does, for the most part, deal with the U.A. problem.

The chart shows the separate Rotation of legs with each leg staying in the "pass up" for two time periods per rotation.

Diagram 4 shows the awesome potential of the 2-Up with width as well as unlimited depth compensation. Any distributor in the "Payline" sponsoring a third starts a Bonus 1 Line and in the same way Bonus 1 3rds start a Bonus 2 Line and so on to a limited width (Bonus 3 in this case) with each 'line' paying to unlimited depth!

holding onto product orders as they will never know when it will benefit them to send them in! However, there are some previously unknown challenges that develop with this new idea. Distributors may, if it occurs to them at all, be concerned that the MLM may be manipulating the rotation to the companies benefit! Even so I still feel this could be the better of the rotation solutions. And after all the MLM company could hire a top accounting firm to audit and confirm the legitimacy of their random rotation.

One more point should be mentioned about random rotations. Some may consider this solution (and rotations in general) to be to much like a lottery.

Consumable products include not only nutritionals and soaps but also things like pre-paid long distance calling cards. Personal Development Training, on the other hand, has proven not to be a consumable item. The addition of repeat sales of these kinds of products create an income stream quite separate from recruiting.

Third Dimension, which failed in its first year, relied entirely on recruiting to create the income which was then intended to be used in re-qualification. After 10 months of networking over 80% of the Third Dimension distributors had not yet re-qualified! Additional incomes from repeat sales may have significantly increased the percentage of re-qualifiers thereby saving the opportunity from failure. Of course Third Dimension's compensation plan also needed adjusting.

The main problem still seems to be how to deal with the "Uncle with Alzheimer's". It maybe that, instead of the rotation, the best solution lies in the layering of two plans together.