Companies have devised a variety of MLM compensation plans over the decades.
- Stairstep Breakaway plans This type of plan is characterized as having representatives who are responsible for both personal and group sales volumes. Volume is created by recruiting and by retailing product. Various discounts or rebates may be paid to group leaders and a group leader can be any representative with one or more downline recruits. Once predefined personal and/or group volumes are achieved, a representative moves up a commission level. This continues until the representative’s sales volume reaches the top commission level and “breaks away” from their upline. From that point on, the new group is no longer considered part of his upline’s group and the multi-level compensation aspect ceases. The original upline usually continues to be compensated through override commissions and other incentives. Continue Reading…