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The Stair step plan, also known as stair step breakaway plan, is one of the oldest compensation plans still in use today. Basically it starts like an MLM Unilevel Plan in that there are an unlimited number of front line positions. As your team grows at some point it will “Break Away” and reduces the commission on the whole group. The name comes from the fact that distributors will advance their rank within the company, earning a greater commission rate with each rank, until they reach a certain point. After “Break Away” from the up-line, there will no longer be the part of the group. Upon breaking away, a distributor becomes entitled to earn even greater commissions.

The main advantages of this type of MLM Compensation Plan is the potential size of the down-line. These types of plans generally have no limit on the number of people who can be recruited into your first generation line. Similarly, there will be no limitation on the number of recruits that your down-line distributors are allowed to recruit.

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