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MLM Compensation Plans: Stairstep Breakaway

September 23, 2005 by Ty | 2 Comments

Jeff Jackson:

Here we are again with our series on compensation plans. The next type of compensation plan we are going to discuss is the stairstep breakaway plan. This is the most common and most difficult compensation plan to explain. Once certain criteria are met a disributor “breaks away” and the sponsor will typically earn a performance bonus of some kind on the entire group volume.

Many times a high monthly personal volume is required to qualify for bonus inclusion and inventory loading tends to happen more often in this type of volume driven plan.

Most breakaway plans promote infinity bonuses of some kind. This bonus at least in the opinion of the author of this blog, causes for the high monthly personal volume.

In Network Marketing Compensation

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Comments

  • Roger A Stockburger on July 9th, 2006 at 12:23 pm

    Amway.
    A very difficult one to earn big bucks in, you need to build width and depth, something that’s very involved and takes immense effort. Yeah sure, 6 DD’s and youre a diamond, but easier said than done.
    No wonder companies with binary plans are producing more income earners !

  • Ignatius on December 3rd, 2007 at 5:55 am

    What sort of marketing plan does Reliv oprates on. Give its advantages and disadvantages. Pls compare it with the other marketing palns.

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