The Stairstep or step and ladder plan is a simple plan that has requirements that you must meet to get up the “Stairs of Success” Every step is a promotion usually based on achieving a certain volume and each promotion or rank gives you a larger cut.
Demotion in stairstep plans to ensure a distributor’s group commits to a certain volume every month. It gives a particular rank a guaranteed income. Demotion in this case means that you must either maintain a certain volume every month (or quarter or fiscal year) in order to maintain that rank.
Let us say for example, Anthony achieves a sales volume of $200,000 in his entire team (for a certain timeframe) and that promotes him from Leader to Champion, certain companies require him to keep up that same sales volume the next time or else he will be demoted back to a leader. In certain plans, there is no demotion in rank, so the group sales are accumulated for reaching the next level.

Maintenance here plays a key factor how building a solid group will look like. If there are low repeat sales for the product being marketed, expect the minimum entry fee to be higher than the average MLM. This is because low repeat sales means less maintenance hence the majority of the income comes from recruiting new blood. If nobody does maintenance in a Stairstep plan, having a high rank doesn’t earn you money so don’t be a fool if someone tells you that the ‘minimum’ income for a ‘grand emperor’ is $100,000 a month – it all depends on the volume generated. On the contrary, plans with maintenance involved do guarantee an income or else you will not be in that rank.

This type of plan is one of the oldest and longest plans around. The advantage of climbing the ladder gives major incentives for distributors to work harder and fight for the target. The larger your group the more you override even up to infinity levels as long as your downline is of a lower rank than you. There is also a fair system involved lets say if your downline works harder than you and sponsors more people, he can actually have a rank higher than you and that is when breakaway in certain plans come into play (discussed in the breakaway plan below)

The disadvantage however, is once a downline reaches a certain rank (lets say you need 3 directly sponsored leaders to qualify as a champion), one of them becomes a leader while you focus on making the remaining 2 groups to become leaders, the first leader might be neglected in the process. The other disadvantage is if the downline is too far deep in the organization (lets say your downline’s downline all the way down 10 generations), some distributors may neglect helping them because the monetary incentive is too small.



To your Network Marketing success,
The Dot Com Objectives Team

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