🪜 MLM compensation plans · Stair-step breakaway
Members climb rank "stairs" by hitting group sales volume, and every step pays a higher percentage. When someone reaches the top, their group breaks away and you earn overrides on it. It's the classic leadership plan of direct selling. See how differentials and breakaways work, try the calculators, then launch it on software built to your rules.
The plan has a stair-step front end and a breakaway back end. Hover each side.
Pick your rank and up to three downline members' ranks with their group volume. See the rank gap and what you earn on each. Use your own figures.
Press breakaway. Leg C reaches the top rank and its group leaves your group volume. You then earn a generation override on it instead. Example figures.
Before breakaway: leg C's 30,000 group volume counts toward your rank.
Example override % on each breakaway generation
When leaders in your organisation break away, you earn a smaller percentage on their group, and on the breakaways below them, often down to 3 or 4 generations if you stay qualified. Hover a generation.
Hover a card to lift it.
The margin on products you sell to your own customers.
Your rank % minus your downline's rank %, paid on their volume.
Extra commission when a new member hits a sales target in their first weeks.
A percentage of each breakaway leg's volume, often over several generations.
A share of company sales for top-ranked leaders.
Trips, cars or cash bonuses for reaching and holding ranks.
It rewards strong leaders, but it's the plan most often criticised for pushing purchases to hold rank. Design matters.
Regulators like the US FTC warn against inventory loading, where people buy product only to qualify for rank. Build these guards into your plan and software. Laws differ by country, so please get legal advice.
Click a plan to see it explained.
| Plan | Width | Paid on | Complexity |
|---|---|---|---|
| Stair-step breakaway | Unlimited | Rank differential + overrides | High |
| Unilevel | Unlimited | Level % | Low |
| Binary | 2 legs | Matched volume | Medium |
| Matrix | Fixed (e.g. 3) | Fixed levels | Low |
| Generation | Unlimited | By rank generations | High |
| Hybrid | Mixed | Mixed rules | High |
Nine modules we build for stair-step breakaway plans. Each links to the related service.
Breakaway plans are the hardest to get right. We'll simulate rank movement and payout ratios before you launch.
Simulate my planSee all MLM plansThe most detailed plan, tested properly before go-live.
Other plans and the services that power them.
Answers for founders, planners and leaders.
It's an MLM compensation plan with two parts. In the stair-step part, you climb ranks by hitting group sales volume, and each rank pays a higher percentage. In the breakaway part, when someone in your team reaches the top rank, their group breaks away from yours and you earn a smaller override on it instead.
You earn the difference between your rank percentage and your downline's rank percentage on their volume. If you're at 16% and a downline member is at 8%, you earn 8% on their group's volume.
Their whole group stops counting toward your group volume for rank. Instead you earn a generation override, for example 4% on your first breakaway generation, 3% on the second and so on, as long as you stay qualified.
They reward people who build and develop strong leaders, and they let the company pay large percentages to top producers. Many long-running direct-selling companies have used versions of this plan.
Losing a breakaway leg's volume can make it harder to keep your rank, which can push people to buy product just to qualify. Regulators such as the US FTC warn against inventory loading, so rules should tie rewards to real customer sales.
Most have 5 to 8. Too many ranks confuse members; too few make the jumps feel too big. We'll model rank volumes against your products.
It can be when income comes from real product sales to real customers, not recruiting or forced purchases. Laws differ by country, so get legal advice. Our software supports customer-sales rules, buyback tracking and income disclosures.
It's the most complex plan, usually about 8–10 weeks including testing with simulated breakaways.
Yes. Common hybrids add unilevel levels below the breakaway, or a binary or matching bonus.
Tell us your ranks, percentages and breakaway rules. We'll scope your stair-step MLM software. We reply within 4 business hours and can demo with your own data.