Most direct selling companies in the world
use the stairstep breakaway. It is the oldest plan in use today. Companies such
as Avon and Rainbow pioneered this compensation plan and are using it to great
effect.
The main advantage
of this compensation plan is that you can develop and maintain a very strong
sales management structure. The Rainbow organization is a perfect example of
this. They have a National Distributor who is responsible for the country. This
person typically pays for the rights to the country, finances the stock, and
manages the warehouse and distribution. They are also responsible for
recruiting and training regional managers (Regional General Distributors) who
look after various predefined geographic regions within the country. The RGDs
then recruit and train Distributors who are responsible for sales in a town or
section of a city. The Distributors appoint the Dealers who sell the products. Read More
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