MLM Stair Step Breakaway Compensation Plan

MLM Stair Step Breakaway Plan

The MLM Stair Step Breakaway Compensation Plan, also known as stair step breakaway or simply stairstep plan, is one of the oldest MLM compensation plans still in use. Basically, it starts like an MLM Unilevel Plan where there are an unlimited number of front line positions. It has a percentage assigned to each level progressively deeper. As your team grows, there are usually group volume requirements to achieving status. Once your team grows big enough, that team will “Break Away” and you will earn a much smaller commission on the whole group instead of maxing out based on the number of levels deep you are.

The name comes from the fact that distributors will advance their rank within the company, earning a greater commission rate with each rank, until they reach a certain point. Then they “break away” from their upline and are no longer part of their upline organization. Upon breaking away, a distributor becomes entitled to earn even greater commissions.

As a distributor in MLM Stair Step Breakaway Compensation Plan, you can only attract on one stage, but organizations add modifications where certain objectives will enhance you to ever greater stages (stair steps) of the amount of your crew’s item sales. And then after you have innovative to a certain stage, you and your group “break”, to a certain level, from your unique sponsor’s immediate group and can generate more.

As your income increases based on the team growing, you finally break away which often causes a settling of income until the team grows monstrous and the small percentage of the group is bigger than the level commissions would have been.

The best way to describe it is with an example.

  • When beginning out, there is usually a front end loading. This implies that the supplier is needed to buy a variety of items to be a part of the company. That results in a Garage complete of items. This has modified over the years as there is now a cap on initial product investment.
  •  Each stairway phase is regarded with a progression in position within the company.
  • Promotion to a new position is reliant on revenue (the amount that you buy from the company (your individual volume) and the variety of customers/distributors that buy from you and are on your team).
  • As you shift to the top of the stairways, you are then permitted to “Breakaway” from your sponsor and run your company individually.

How does It work?

With each step/rank, you are allocated an amount lower price or refund you generate on your buys from the company. For example, the first stage (sales professional level) may generate a 20% discount, the second stage (Distributor), will generate a 25% discount, the third stage (Supervisor) a 30% discount, the fourth stage (Manager) a 35% discount and the fifth stage (National Director) generates a 40% discount. As you improve up the steps and get marketed, your company amount discount rates or discount rates improve.

Once they have achieved Distributor, Supervisor, Manager or National Director title status, they need to maintain the status (or higher) for 3 consecutive months to earn a once-off “TITLE BONUS”. Should they slip down a level, and later are promoted again, they will start again and need to maintain the level for 3 full consecutive months to qualify for the once-off title bonus.

MLM Stair Step Breakaway Compensation Plan

Sales Executive Level joins the company with a once-off registration fee of $400. They must have a SPONSOR, or their registration will automatically be assigned to Head office.Sales Executive Levels (SEL) need to refer at least 6 new “QUALIFIED” recruits (they have paid their once-off registration fee) who the Sales Executive Levels (SEL) personally “sponsors”. At the start of the following month, they will then be “PROMOTED” to “Distributor” (D).

Step 2 – Distributor

A Distributor can personally have at least 6 qualified SEL’s, each of whom has paid the registration fee (in the month of joining) or their monthly fee of $99. There is no time limit to qualifying as a Distributor, it may take 3 weeks or 3 years. As soon as one become a Distributor, then they are promoted to a higher status.Each time a Distributor produces a “DIRECTLY SPONSORED” Distributor within their Team, they earn a once-off “PROMOTION” bonus of $100. This “promotion” bonus has no time limit, and is paid every time they promote a directly sponsored Distributor.

Step 3 – Supervisor

A Supervisor can personally have at least 8 qualified Sales Executive Levels (SEL), as well as personally sponsored 3 qualified Distributor’s (each of whom has personally sponsored at least 6 qualified SEL’s). There is no time limit to qualifying as a “SUPERVISOR”.Each time a Supervisor produces a “DIRECTLY SPONSORED”Distributor or Supervisor within their Team, they earn a once-off “PROMOTION” bonus of $300 or $550 respectively. These “promotion” bonuses have no time limit, and is paid every time they promote a directly sponsored Distributor or Supervisor.

Step 4 – Manager

A Manager can personally have at least 26 qualified Sales Executive Levels (SEL), as well as personally sponsored 4 qualified Distributor’s (each of whom has personally sponsored at least 6 qualified SEL’s), as well as personally sponsored 3 Supervisor’s (each of whom has the minimum qualifying Team structure).Each time a Manager produces a “DIRECTLY SPONSORED” Distributor or Supervisor or Manager within their Team, they earn a once-off “PROMOTION” bonus of $300 or $550 or $850 respectively. These “promotion” bonuses have no time limit, and is paid every time they promote a directly sponsored Distributor, Supervisor, or Manager.

Step 5 – National Director(ND) and Director’s Club(DC)

A National Director (ND) can personally have at least 36 qualified Sales Executive Levels (SEL), as well as personally sponsored 8 qualified Distributor’s (each of whom have personally sponsored at least 6 qualified SEL’s), as well as personally sponsored Supervisor’s (each of whom have the minimum qualifying Team structure).There is no time limit to get qualified as a National Director (ND).Each time a National Director (ND) produces a “DIRECTLY SPONSORED” Distributor or Supervisor or Manager or National Director (ND) within their Team, they earn a once-off “PROMOTION” bonus of $300 $550 $850 R1,600 respectively. These “promotion” bonuses have no time limit, and is paid every time they promote a directly sponsored Distributor, Supervisor, Manager, or National Director.

Once a National Director (ND) promotes another “directly sponsored” National Director (ND), they are automatically promoted to the “DIRECTOR’s CLUB” (DC) status. Once they have achieved DC status, they immediately earn a once-off “TITLE BONUS” of $4,600. However, they should achieve DC status within 10 months of registration they will earn a higher bonus of $6,600. Also, once they have achieved DC status (or higher), they need to maintain the status for 3 consecutive months to earn a once-off “TITLE BONUS” of $6,600.They should slip down a level, and later are promoted again, they will start again and need to maintain the level for 3 full consecutive months to qualify for the once-off title bonus of $6,600.

Advantages of the MLM Stair Step Breakaway Compensation Plan

Historically MLM Stair Step Breakaway Compensation Plan has offered the best earnings potential. The breakaway component of these plans 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, the commission doubles. 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.

Another advantage of this type of MLM Compensation Plan 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.   

What Type of Compensation Plan is Best for You?

I wouldn’t suggest to anyone that they choose their company based on the compensation plan alone.  It may come into consideration, but there are more important things to consider when picking a network marketing company.

Over to you. Do your MLM company use the MLM Stair Step Breakaway Compensation Plan? How is it working for you?

Jetro Olowole
Follow Me

Jetro Olowole

Life Coach & Business Development Manager at Jetro Olowole
I Want To Show People How To Build Passive Income Business And Live A Comfortable Lifestyle By Helping Them Turn Their Active Income To Passive Income Using The Business Quadrants Wealthflow Theory. I Likes To Talk About The Business Quadrants Golden Rule Of Wealth Every Chance I Got Because I Loves It! Like my official Facebook Page and Follow me on Twitter for updates.
Jetro Olowole
Follow Me
Share