How Powerlines Work
The powerline compensation plan is simple. You pass up a sale or 2, to your qualified sponsor, and in return, every paid member you refer does the same for you, i.e. they pass up sales to you.
For example, in a 2-up program, the script passes up 2 sales from every member to the next qualified sponsor above them. From the third sale and beyond, all members are qualified, and thus keep their own sales, and start their own powerlines, meaning their referrals, and their referral’s referrals, will all pass up their first 2 sales to them. It is an incredible pay plan.
X-up comp plans are very popular and behind some of the largest home based business opportunities. Members in your downline, who were passed up to you, through the powerlines X-up comp plan, will appear under a heading called LEVEL 1 POWERLINE SALES. This heading will not appear before you have accrued any powerline sales. As your powerline legs grow, you see a LEVEL 2 POWERLINE SALES header, then level 3, etc..
If the X-up powerline compensation plan is a one time fee, then members will only ever have to pass up the required amount of sales once.
Subscription Based Powerlines
Any powerline subscription program will require that members maintain their qualified sales – i.e. they cannot have a friend join for one month, (just to qualify them), and then drop out. If a member (who represents a qualifying sale) drops out, that position will be replaced by the next referral that member makes, but the member will not lose any powerlines in the meantime.
For example, say the program is a 2-up, and you have 10 Active members – Active meaning paid, and it is a subscription powerline program. Now let’s say you lose 2 members, which were your qualifying sales. You are not in any danger. In fact you can remain in the program and keep your 8 powerlines paying you monthly, as long as you remain Active in the program yourself. However, if you continue to refer members, the next 2 members you refer will be qualifying members again – to fill the qualifying positions you now have open.
This way, members cannot “game” the program, and at the same time, it is very fair in that no member shall be unfairly penalized by being forced to give up a powerline subscription they have rightly earned.
Are Powerlines MLM?
Technically speaking, no, since all sales are passed up to the first level of the powerline sponsor. They are both network marketing. Some payment processors disallow MLM, and put powerlines in the same category. So be mindful of the terms of your merchant account provider. When in doubt, ask beforehand.