No Up Gifting Programs Compared to 1 Up Cash Gifting

How does no up gifting compare to 1-up and other payment structures. Is it indeed superior as some have claimed? Not at all, instead the reverse is actually true. lets see why:

(1) The No Up Gifting System: In this payment structure, you immediately qualify to receive gifts from those you invite as soon as you pay your admin fee (if any) and send your gift to your own inviter. Every other enrollee who joins the program through your invitation sends his or gift directly to you. There is no question of having to wait till you have enrolled a certain “qualifying quota” before you are in the receiving position.

The main advantage of the cash gifting no 1 up structure is that it is simple to understand and administer. Supporters of the system often claim that it encourages team work. Also, instinctively many people like the fact of having to keep all their enrollees(including the first) and this supposedly reduces the rate of drop outs from the program as people tend to be more encouraged, hopeful and less likely to drop-out if they have enjoyed some measure of success in the program, no matter how small.

The biggest disadvantage of the no up gifting for me is that compared to the 1 up system, the former does not encourage teamwork since the only way to increase earnings is to recruit more and more people into the program. To counter this drawback some programs, such as the peoples program, have introduced a requirement that each enrollee sends a proportion of each and every gift to their inviter’s inviter. Since this is often only a small fraction of the gift, any substantial income would still have to come from directly recruiting a large number of people.

As shown below, the 1 up system actually overcomes the above problem at the expense of some complexity. But overall I believe the 1 up is actually to be preferred over no up gifting programs.

(2) 1-Up System:

This ingenious system, when combined with the right gifting program, can dramatically change your financial life. This is how the 1 up system works: You become a member by paying an admin fee (if any) and sending your first gift, to your inviter if he is already qualified (otherwise to his or her inviter).

Now that you have joined and sent your first gift, you can invite others to join the program. However, the first person who joins the program through your invitation (Allen, say) sends his gift to your inviter rather than to you. This first person is called your qualifier and is passed up or assigned to your sponsor. You are now in the receiving position and qualified to receive gifts from others who join after you.

Now (Bob), the second person you invite into the program begins your so-called 1st receiving line, and they will send their gift directly to you. But Bob must qualify in the same way as you did. So Bob’s qualifier (the first person they bring into the program) will send their payment also to you. Similarly, all of the qualifying people in Bob’s receiving line, all the way down to infinity, will also send their gifts to you. Just imagine that. If you are not impressed and excited then you mostly have not understood it!

Now in the above we have only described, your 1st receiving Line, but it does not need to end there. Each of your personal invitees who becomes a member will begin a new receiving line. And of course, you are free to invite as many people as you like, meaning you can have an infinite number for receiving lines!

The 1 up system is extremely powerful, combining the power of leverage with the possibility of a substantial residual income even if you have just a handful of personally enrolled members. Its main disadvantage is the slightly more complicated structure, which in most cases would be managed by tracking software anyway.

In principle, simply by training each of your enrollers to replicate your success, you can achieve true financial freedom without the need to continuously recruit new members. It has the potential to encourage more effective team building than the no up structure. It was this realization that really exploded my income and freed me from debt.

The 1 up, just like the no up gifting system is a linear structure which is mathematically and theoretically sound. It is frequently used by direct sales, credit card and insurance companies. In 1 up programs, there is no “fat cat” at the top of the pyramid making all the money while the foot soldiers languish in poverty.

(3) The Reverse Funnel System:

Even more power full than the 1 up is the reverse funnel system in which rather than passing up your 1st enrollment, you pass up your second and 4th personally invited members. This can be thought of as a combination of the 1 up and no up gifting systems.
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