There are numerous home based business programs out in the vast sea of the Internet but there is one type in particular that can be a downfall for many new entrepreneurs if they are not careful. They are usually a more expensive program to join, but that is not the problem with them for the most part. We will discuss this type of home based business a little further.

They are sometimes referred to as a 2up program. What does that mean?

Basically, it means a 2up program has a compensation plan where you, as a new member, have to pass up the first 2 sales to your trainer or mentor to qualify for earning any money. Once you have made 2 sales you are now qualified to earn money and the 3rd sale you make will go into your bank account. Great! Now just like your trainer received your first 2 sales, your new people (the 3rd sale and beyond) have to pass up their first 2 sales to you now. Fantastic! It continues like this forever, so it looks good on paper because you will earn a lot of money this way.

Sounds good so far, right?

Well, unless you want to compete with your trainer and all of the people that join your business, then the 2up program may not be for you. The first problem is many people don't make it past their 2nd sale because their advertising budget runs out or they just don't quite know how to do Internet marketing yet. It also discourages team work because the people that you sponsor become your competition after they pass up their first 2 sales to you. Your trainer has just lost all of their drive to help you? Their income that you were bringing them has just been cut off. Their incentive is gone. I was in a couple of 2up's before and I did not like the fact that good people that you bring in to the business become your competition and your trainers no longer have any incentive to work with you or your team.

On the other hand, there are a lot of people that do earn good money with these types of programs. There are many of these types of compensation plans out there but here are a few of them: Coastal Vacations, EDC Gold, Liberty League, Emerald Passport, Advantage Conferences and Passport to Wealth.

They look good on the surface because you have the ability to make a tremendous amount of money if you can get past the first 2 sales, which is the downfall for the majority of people that join the 2up programs. The average person in the home based business or MLM arena only make 2-2.5 sales, so when a new person has to pass up their first 2 sales to their trainer or mentor they have already given up because of all the work they put into those first 2 sales without earning a cent.

Generally, if the average person looking into this type of home based business understands the compensation plan, the first obstacle is convincing them that they have to wait until their 3rd sale before they get paid any money at all. This makes it a major obstacle for many prospects and increases the marketing complexity. Please just make sure you do your homework if you are considering any of these 2up programs (Coastal Vacations, EDC Gold, Liberty League, Emerald Passport, Advantage Conferences and Passport to Wealth, etc.) if you truly want to build a business that is focused on team work.

There are other programs on the Internet that do provide you with a high income potential and you get paid instantly on your very 1st sale.

I hope this information was simple and clear enough for you to do your due diligence when you are looking into these types of companies. Look for a MLM or home based business that you feel good about and that builds true team work because that type of business will be built on a foundation of stone.