Stairstep/breakaway Mlm Compensation

Stairstep/breakaway MLM compensation is historically the most familiar pay plan in network marketing

. As with any pay plan, their are pros and cons of stairstep and breakaway MLM compensation plans.

Advantages of stairstep and breakaway MLM compensation

Historically stairstep plans have offered the greatest earning potential. The breakaway component of this type of plan allows a person to build bigger teams and earn compensation from deeper generational levels. For example in a unilevel plan that is 6 levels deep, you would draw commissions from only 6 levels. But in a stairstep/breakaway plan, that could in theory double. If a person on your 6th level breaks away, you would be eligible for override compensation on the volume of their entire group, which could potentially be 6 levels deep as well. You would then be receiving compensation from generational levels of the organization.

Another advantage of this type of MLM compensation is the potential size of the downline. These types of plans generally have no limit on the number of people who can be recruited into your first generation line. Similarly, there is no limitation on the number of recruits that your downline distributors are allowed to recruit.

The third advantage to the stairstep/breakaway compensation plan is the historic stability. In the history of MLM very few companies have lasted in the marketplace for a period of 7 years or more. According to a 1996 MarketWave study, 86% of those surviving companies were found to have stairstep/breakaway MLM pay plans. It is thought that the corporate profitability of this type of MLM compensation plan has led to the long term viability of the companies that use it.

Disadvantages of the Stairstep and breakaway MLM compensation

It is no secret that the real power of leverage takes place at the deeper levels of an MLM organization. Although stairstep/breakaway plans offer the greatest commission potential on the back end, they also require harder work and longer delays before those deep level commissions come in to play.

Another disadvantage in this type of plan is the use of production requirements. Most plans of this type require a minimum amount of product be purchased every month and a certain number of recruits and purchases by those recruits. The higher up the staircase you ascend, the higher the production requirements become. If a leg breaks away, you lose the sales volume of that leg from your overall volume, requiring you to recruit more distributors to keep the group volume of your personal group moving forward.

Stairstep plans tend to be geared towards the higher levels of the staircase making front end compensation may not be as generous as it is in other MLM compensation arrangements.

As with any network marketing compensation plan, stairstep/breakaway plans can be very profitable if you know your craft. The long term potential of this type of plan is very rewarding for those who have made the commitment to their business and refuse to give up.

by: Carl Willis

POST COMMENT

Matrix Plan Mlm Compensation Claiming Compensation For The Loss Of A Chance Hints To Seek Necessary Compensation When Hurt During Work Time Reglan Lawsuits Can Lead To Compensation For Those Suffering From Tardive Dyskinesia Compensation For Whiplash, Win Your Claim ! Are You Entitled To Ppi Compensation? Binary Mlm Compensation Benefits of Hiring Work Accident Compensation Claim Solicitors Compensation for Whiplash: How to Claim It Accidents at work - are you entitled to compensation? How Workers' Compensation Benefits Work To See You From Commencement To Finish, Worker's Compensation Attorney Ways To Receive Necessary Compensation When Damaged At Work