Stairstep Breakaway Compensation Plans

The Stairstep Breakaway plan, also known as stair step breakaway, stair-step breakaway, or simply stairstep plan, is one of the oldest compensation plans still in use today. 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’s organization. Upon breaking away, a distributor becomes entitled to earn even greater commissions.

In a stairstep breakaway comp plan, you can personally sponsor as many other distributors as desired, and all of these new distributors are placed on your first level. The main goal is to promote and sell the company’s products or services, and in a stairstep breakaway plan this is best done by recruiting as many frontline distributors as possible.

A few things to point out here are that first: just as you broke away from your upline, distributors in your downline will advance and eventually break away from you. When this happens, you can still earn an override commission on them, but it is usually much less than what you had been earning while they were part of your organization. However, you can still make good money by creating many breakaway organizations in your downline, because a small percentage on a very large group is still a good paycheck. Also, many people find the stairstep breakaway plan difficult to understand, and harder to explain to a prospect.

One other thing to point out is that since helping someone in your sideline can cause them to break away from their upline, helping those in your sideline is strongly discouraged in a stairstep breakaway plan. The upline’s commission will drop and they won’t be too happy. Stick to helping your own downline, and creating as many breakaway organizations as possible.

To recap, the stairstep breakaway compensation plan is best for people who can do a lot of recruiting independently, and develop and manage those distributors until they can break away on their own. There is little emphasis on teamwork, and in some cases it is even discouraged. However, this is a very well established business model that can pay you long term rewards if you can create numerous breakaway organizations.

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