Modern Australian X-Up is a derivation of the Unilevel. The Modern Australian One-up, Two-Up, or Three-Up, or X-Up or any distinction of ups. There’s no way to fix this irredeemable, broken and usually failed system of agreement, so any distinction of it should be avoided. It is called “pass up” sales, in other words, you pass up sales to your upline.
In the original Australian X-Up, the distributor would pass up the first X sales to their upline. After passing up the first X sales, the distributor would collect their commissions on the upcoming sales. When the downline of the distributor makes a sale, they will pass up their first X sales to the distributor. This would go up to infinity. An Australian X-Up is always associated with a one-time sale, so there are no residuals. The income usually flows entirely from selling one product to new people. There may be other products, but one single product accounts for 99% of the business volume.
How does it work
Australian 2-up : The distributor or recruiter will not earn by recruiting the first two purchasers. The sponsor of the distributor earns the bonus. So the first two sales will go for the upline, and it is called a “2-Up” pay plan. The recruiter earns the bonus only after recruiting the third purchaser or for recruiting the subsequent purchasers. From the third purchaser enrolment, the distributor or the recruiter starts earning the benefits generated by the enrolled purchasers.