Is the stairstep breakaway plan good for part timers?
The stairstep breakaway plan is a combination of two pay plans. This plan is one of the first network marketing compensation plans. It is a proven comp plan that a lot of new companies use.
The first word in stairstep breakaway plan is stairstep. The stairstep pays you for the total volume of your group’s sales. Meaning your own total sales and your downline's sales. Now, explaining this to your downline is something different.
The biggest disadvantage of the stairstep breakaway plan is that it's very complicated to explain. It has a proven profitability but that's not the only reason to join a company.
Attaining different levels of rank also determines the percentage of overrides you receive on your downline's sales.
So, if you are an associate (entry level) you get a 5% override. The next level is manager which bumps you up to a 15% override and so on and so forth.
The second word in the stairstep-breakaway plan is breakaway. This word suggests an associate advances to another level and breaks away from his original sponsor's line.
There are advantages and disadvantages to this plan. One advantage is that there isn't a limit on the amount of associates you can sponsor (your frontline). Another advantage is receiving a higher commission.
But this too is a negative because it hurts the team you left. By taking your volume sales away from your sponsor, you kill the flow of volume sales. In other words it’s like a business losing its best customer.
Your original sponsor will still get a portion of your sales. But, it is a smaller percentage of sales called an override commission.
Another disadvantage of the plan is associates will leave your team to make their own. Initially it will hurt your month to month money. But it will help you earn a residual income year to year.
This allows you to focus more on recruiting associates for your frontline. Usually this plan benefits the experienced or full time recruiters.
The newbies often get hurt by this plan because they have to carry a large group of volume sales. This tends to result in associates being stuck with products they can't sell.
It is important to understand the in's and out's of your network marketing company's compensation plan.
The stairstep breakaway plan has its advantages, but it also has its disadvantages. Look at the bigger picture when it comes to selecting the company you want to represent.
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