In a stair step breakaway plan, distributors are organized in a hierarchy of levels or “steps,” with each distributor being responsible for building a team of downline distributors who also recruit others. As a distributor moves up the steps, they are eligible for greater rewards and commissions.
In this plan, a distributor can break away from their upline distributor when they achieve a certain level of success, which is often defined by a sales volume or a number of downline distributors. When a distributor breaks away, they become an independent business owner, with their own downline and commission structure.
This breakaway can have two different effects on the upline distributor:
They can lose the volume and commissions generated by the downline distributor who has broken away.
They can continue to earn commissions on the sales volume generated by the downline distributor, but at a reduced rate, often called a “compression” rate.
In this way, the stair step breakaway plan encourages distributors to build their own downline and achieve success, while also providing incentives for upline distributors to support and mentor their downline distributors.