Sorry Alice, but this isn't Wonder Land. The reality is the stair-step break-away has some features that work for you, and some that work against you.
WARNING: Neglect to ask these three critical questions at your own peril.
1. "How many people do I need to make a given income goal?"
2. "How much volume do I need to make a given income goal?"
3. "What do I need to do to make a given income goal?"
The up sides of the stair-step break-away.
1. It allows massive width. Say you sponsor 50 people, all placed on your front line. This gives you all the team volume.
2. If you sponsor a dud and then sponsor a builder this won't hurt you. You'll just work with the business builder.
The down sides of the stair-step break-away.
1. A builder below a dud can keep you from qualifying for some bonuses. The duds won't qualify for levels that help you.
2. The break away:
a. Say you have 5 legs with 50K total volume. You need10K volume per leg to be paid, but one leg has 30K volume. The strong leg will not pay because it has too much volume. All 5 legs must have equal volume.
b. Let’s say you are making 15% overrides on qualified legs. When they break-away you lose 10% of their personal volume and you're left with 2% or 3% of their personal volume. In some cases this incredible shrinking check can drop to 0%!
Always ask what you need to do, how much volume you need, and how many people you need to reach your income goal.
The stair-step break-away is a perfect comp plan for super recruiters. They instinctively find 50 more people to replace the income lost to break-away team members. They also see studs placed under duds as minor blips on the radar.
MLM is not a numbers game ... but ... you should work with the numbers.
If you're like 97% of all networkers, you're more likely to be hit twice by lightning than you are to to duplicate that robo recruiter's actions.
Your team probably won't grow like you need it to. And that balanced downline volume thing will strangle you to death. Besides, even if you meet the volume & team count requirements, who in their right mind wants a massive pay cut after all that work?
3% of all network marketers can succeed with the stair-step break-away. Why not go with the more favorable numbers?
Bill Tessore
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2 comments:
Bill
Thanks for the comp plan breakdown of a breakaway. Some plans just make it so difficult to know where your money is coming from.
But so easy to see where it's going
Gary McElwain
Hi Gary,
You're so right about "where the money goes".
In my experience those super recruiters are also really good at deflecting questions about one's out lay (ex.: "they're tax right offs).
Never mind the fact that tax right offs are only as valuable as one's ability to earn a check.
I appreciate you,
Bill Tessore
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