Stair Step Plan
Rank-Based MLM Compensation Structure
Stair Step Plan
The MLM Stair Step Plan, also known as the Stair Step Breakaway Plan, is a compensation structure that rewards members based on personal and group sales volume. Under this plan, company will offers different level of ranks. Example ranks common used in mlm industry are Bronze, Gold, Platinum and Diamond. For each rank, member has to hit their sales target by personal sales and group sales. Once hit, they entitled for higher rank. Normally higher rank means higher commission.
When is breakaway happened?
When a downline member reaches a certain rank which exceeding their upline's rank, they "break away" to form their own group. The upline earns less commissions but override with smaller percentage on the breakaway group's sales, encouraging continuous recruitment to maintain income.