The Multi-Level Marketing (MLM) ecosystem provides a variety of business models, each with special characteristics and tactics. The Stairstep Breakaway Plan stands out among them as a unique strategy for distributor independence and growth. This article will explain how this plan functions, as well as its legitimacy and relevance to MLM.
Becoming familiar with the Stairstep Breakaway Plan
Different from other MLM models, the Stairstep Breakaway Plan uses a unique strategy. Once they reach a certain level of sales, distributors can leave their upline under this plan. These distributors no longer contribute to their upline’s commission income after the breakaway because they now work independently.
Every step of the process corresponds to a sales target or level, and the process can be represented as a staircase. When a distributor reaches the highest point, known as the “breakaway point,” they are then free to operate independently.
The Stairstep Breakaway Plan’s Special Appeal
The Stairstep Breakaway Plan’s ability to inspire distributors is at the heart of its essence. Distributors may be strongly motivated to hit their sales goals by the prospect of severing ties and running their businesses independently. Once they split off, they are free to develop their downline without having to split the profits with their original upline.
Regarding the Stairstep Breakaway Plan’s legality
The Stairstep Breakaway Plan’s legal standing, as with all MLM business models, depends on its primary objective. If selling lawful goods or services constitutes the primary source of income, the plan is legitimate.
However, a fraudulent pyramid scheme may resemble MLM models like the Stairstep Breakaway Plan and make money primarily through the recruitment of new participants, placing little to no emphasis on the sale of actual goods or services. Most jurisdictions consider such schemes to be unlawful.
The Stairstep Breakaway Plan can be used as a legitimate MLM tactic if it is implemented correctly and a strong emphasis is placed on actual sales rather than recruiting.
MLM and global regulations
Regarding MLM operations, different nations have different laws. As a result, distributors participating in or thinking about participating in the Stairstep Breakaway Plan should be aware of the unique MLM regulations applicable to their particular geographic regions. The Stairstep Breakaway Plan is an appealing MLM model, largely because of its special breakaway feature.
Motivated distributors have a good chance of achieving their goals and working on their own because of this. To maintain the plan’s legality, it is essential to make sure that the implementation emphasizes actual product or service sales. Keep in mind that a genuine MLM model will always place a premium on the usefulness of its products and the satisfaction of its distributor network.
Author: Pooyan Ghamari, Swiss Economist