The Breakaway

This plan has been said to have become somewhat unpopular in the industry, as you could lose the business you build, once it gets to a certain level of success, and it “breaks away” to no longer be a part of what you get paid on. It usually appears in stair-step. Lets use the example above in the stair-step illustration.

If I am a Champion and my down-line builds his organization faster than me, and qualifies as an Emperor before me, 2 things might happen.

Depending on the company’s pay structure, I will not be eligible to receive overriding commissions from my downline Emperor’s group. Hence the ‘breakaway’ his bonuses will be ‘passed up’ to MY upline Emperor or Grand Emperor. In some cases, the ENTIRE group breaks away and join MY upline so even if I do qualify as an Emperor later on, I will not receive bonuses from his group! Selfish people might even involve in SABOTAGE as in trying to slow down his downline from breaking away or overtaking him.

Today, more and more companies are acknowledging the breakaway problem and will start awarding leadership development bonuses (such as a fixed bonus percentage over that entire group even those they have broken away). This system has still worked out well in the past though, because it gets people working harder to prevent the breakaway from happening.

In MLM (just like in life), companies reward PEOPLE who work hard to build their groups. If a downline works harder than his upline, he should get paid more – hence it is more fair to them. So in this case if an upline doesn’t work hard enough, he shouldn’t blame the company if the downline breaks away.


To your Network Marketing success,
The Dot Com Objectives Team

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