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MLM Stairstep Breakaway Compensation Plan
The MLM Stairstep Breakaway is the oldest MLM compensation plan still in use. Amway, Herbalife, New Skin and most of the really old MLM companies use this type of MLM commission plan.
In 12 years of selling MLM Software INS has yet to have a client request either the design or implementation of an MLM Stair Step Breakaway commission plan.
This is kind of like a roller coaster of an MLM compensation plan. Hard to get started, but if you can get it turning over, you can make a lot of long term money.
Basically it starts like an MLM unilevel commission plan in that there is an unlimited number of front line positions. It has a percentage assigned to each level progressively deeper. As your group grows, there are usually group volume requirements to achieve status. Once your group grows big enough, that group will "Break Away" and you will earn a much smaller comission on the whole group instead of maxing out based on the number of levels deep you are
As your income increases based on the group growing, you finally break away which often causes a settling of income until the group grows monstrous and the small percentage on the group is bigger than the level commissions would have been.
This MLM commission plan is probably currently the least attractive to the distributor force and has the lowest overall payout to the field traditionally. The large MLM companies using this often have payouts of only around 25% of wholesale.
INS can certainly help to design an MLM stairstep breakaway compensation plan should you need help with yours. We have a generous Share in the risk plan on MLM commission plan design available to all our MLM Software clients.
Contact us today to learn more about INS MLM Software or our other MLM related services or request pricing by Clicking Here.
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