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The StairStep Breakaway Plan, also known as stair step breakaway or simply stair step plan, is one of the oldest compensation plans still in use. With Stair Step plan, you can build a network as vast as you want for your front line of distributors.
Basically, it starts like an Unilevel MLM Plan where there is an unlimited number of front line positions. It has a percentage which is assigned to each level as it goes progressively deeper.
As the team grows, there are usually group volume requirements for achieving the rank. Once the team grows larger, the team will “Break Away” and the member will earn a much smaller commission on the whole group instead of maxing out based on the number of levels deep there are in.
The name “Stairstep” comes from the fact that the distributors will advance their rank to reach a certain point within the company to earn a greater commission rate as per the rank. 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.
The distributor in the Stairstep Breakaway Plan can only attract on one stage, but organization modifies it with certain objectives which will enhance the distributor to grow up to higher stages (stair steps). It also increases the group sale amount. Once the distributor has reached a certain innovative stage, the distributor and his group will break away to a certain level from the immediate sponsor and can generate more
As the income increases based on the team’s growth, the distributor finally breaks away which often causes settling of income until the team grows larger and the small percentage of the group is bigger compared to the level commissions.
With each step/rank, the distributor is allocated an amount of lower price or refund he generates on his purchase 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 the distributor moves steps ahead and gets marketing, his company amount or the discount rates gets improved.
Once the member has achieved Distributor, Supervisor, Manager or National Director position, he needs to maintain the current position (or higher position) for 3 consecutive months to earn a “ONCE-OFF TITLE BONUS”.
If the member slips down a level and later promoted, then again need to maintain the level for 3 full consecutive months to qualify for the once-off title bonus.
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 ( SEL should have paid their once-off registration fee). At the start of the following month, the SEL will then be “PROMOTED” to “Distributor” (D).
A Distributor can personally have at least 6 qualified SEL’s, each of them has paid the registration fee (in the month of joining) or their monthly fee. There is no time limit to qualify as a Distributor, it may take 3 weeks or 3 years. As soon as SEL becomes a Distributor, they are promoted to a higher status. Each time a Distributor generates a “DIRECTLY SPONSORED” distributor within his team, he earns a once-off “PROMOTION” bonus. This “promotion” bonus has no time limit and is paid every time they promote a directly sponsored Distributor.
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 qualify as a “SUPERVISOR”.
Each time a Supervisor generates a “DIRECTLY SPONSORED” Distributor or Supervisor within their team, they earn different once-off “PROMOTION” bonus as per the company norms. These “promotion” bonuses have no time limit and are paid every time they promote a directly sponsored Distributor or Supervisor.
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 different once-off “PROMOTION” bonus as per company norms. These “promotion” bonuses have no time limit and are paid every time they promote a directly sponsored Distributor, Supervisor, or Manager.
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 different once-off “PROMOTION” bonus as per company norms. These “promotion” bonuses have no time limit and is paid every time they promote a directly sponsored Distributor, Supervisor, Manager, or National Director.
Once they have achieved DC status, they immediately earn a once-off “TITLE BONUS”. However, if they achieve DC status within 10 months of registration they will earn a higher bonus. 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”. If they slip down a level, and later promoted, they need to maintain the level for 3 consecutive months to qualify for the once-off title bonus.
Check Stair Step MLM Software Demo and analyze the efficiency of our MLM Software. The demo shows all the possibilities of the best stair step MLM Software with its features, rules, commission calculation, and compensation parameters. It is suitable for all types of industries.
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