Stair Step Plan is considered as one of the oldest Multilevel Marketing Compensation Plan which is still in use and is capable of very high earning potential. Although the plan is a little old schooled, even highly qualified professionals are willing to invest in this plan due to its high-profit drive. This plan has unlimited growth potential which is why it is so popular in the Network Marketing business. The main perk of this plan is the 'breakaway' factor.
Stair Step Plan or Stair Step Breakaway Plan basically starts like an Uni-Level Plan in which you can sponsor or recruit as many frontline members/distributors as you like. There is no width restriction on the number of frontline distributors and all distributors are paid the same percentage of commission on their downline sales. The goal is to broaden one's frontline network as wide as possible and then encourage the sponsored/ recruited distributors to build a stronger and longer network down the line. The recruiters are responsible for both personal and group sales volumes. Volumes are created by recruiting and by retailing products. On achieving predefined personal and/or group volumes, the recruiter breakaway from the upline organization and is entitled to earn even a greater commission. The breakaway component of this plan motivates the recruiter to build a bigger team with good compensation rate from deeper generation levels. The breakaway depends on the revenue from the downline members.
Different types of compensation used in the Stair Step Plan are: