Stair Step Breakaway Compensation Plan

The Stair Step Breakaway plan was the first type of network marketing compensation plan and is still today by far the most common.

But it might not be the best MLM compensation plan for you, if you don't understand what you're getting into.

It can be pretty difficult to understand and to explain to prospective distributors, though. And because it's such a common type of plan, many network marketers find themselves in multi level marketing companies that use this type of plan, but are confused about how it will work until they start to get paid... or worse, until they realize the specific reason that they haven't yet become qualified to earn any commissions.

As a distributor in a stairstep breakaway plan, you can only sponsor on one level, but companies add variations where certain goals will promote you to ever higher levels (stair steps) of commission from your team's sales. And then after you have advanced to a certain level, you and your team "break away", to a certain extent, from your original sponsor's immediate team and can earn more. Similarly, distributors in your downline, along with their downline, can grow enough to break away from your team. At that point, you do still earn a commission from that team's sales, although it's a smaller percentage commission.
The upside is that each time a team breaks away from you, you earn this smaller percentage commission on each of an increasing number of breakaway units downline from you as time goes by.

This plan can often require the most work to succeed, so it tends to have more distributors dropping out of the program than other types of network marketing compensation plans. Of those who don't drop out (but probably should, because they aren't achieving much success) many tend to have a growing pile of unsold product, too much for them to personally use, that collects in their garage, basement, or spare room in their homes.

So is this the best MLM compensation plan for you?
Only you can decide that... after studying all aspects of the business and, especially, the unique variations in the Stair Step Breakaway Plan that you're considering. Some companies' modifications are very good and are geared toward helping distributors to succeed.

As always, do your homework and ask questions.

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