Stairstep Breakaway

Which Compensation Plan for Which Colour?

by Wayne Wu on December 20, 2009

in Understanding People

Have you ever been really bummed out by why some people are successful in your company and you’re not? Have you been annoyed by the fact that some newbie who joined just a few months ago has already reached his first pin level, while you haven’t even moved from zero after one year?

The worst thing you can do is to feel inadequate about it, because it’s not your fault. Over the last few posts, we’ve covered a lot about personality types and how to relate to each of them. In this article, I discuss how each personality performs in the various compensation plans.

Yep, that’s right, some personality types are just not “wired” to perform well in certain compensation plans. Here’s why… [click to continue…]

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How the Stairstep Breakaway MLM Compensation Plan Works

by Wayne Wu on December 2, 2009

in MLM Compensation Plans

SpiralThe stairstep breakaway pay plan is the oldest MLM compensation plan. Having stood the test of time, it is the most commonly used compensation plan. The oldest and largest MLM companies, Amway, Herbalife, Mary Kay, Neways, Nu Skin still use this type of pay plan. It is also the most complex form of compensation plan and the most difficult to explain to new prospects.

Before the days of computerised databases and online ordering, distributors did not deal directly with their MLM company. They actually bought products at wholesale price from their sponsoring upline, who bought from his sponsoring upline and so forth until the first “direct” distributor who dealt directly with the company.

In fact, some companies still use “direct” to distinguish their top producing distributors from others, with designations such as Gold Direct, Platinum Direct, Emerald Direct, Diamond Direct etc. [click to continue…]

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