Breakaway is a feature found in most Unilevel or Stairstep plans where a downline reaches a target faster than his upline.
Here is an example:
In this company, you need to recruit three downlines in order to advance from having a 9% commission to 12% commission. The SPONSOR has to recruit 3 downlines then only he goes to 12% but his downline achieves this criterion before him.
This is a very common scenario on network marketing because you can’t possibly ask a downline to slow down (it is HIS business after all) and different people put in different amount of effort.
Depending on the company plan, a breakaway in this case means that the upline will no longer be eligible to receive commissions from the downline group forever. The commission that is due to the UPLINE will go to HIS UPLINE (the one even higher up) who has achieved the rank higher than all those under him. In some cases, the downline will even bypass his sponsor and his entire group will join his new upline
Downline Building Strategies
It is very important to understand that the upline and the downline are all part of a team and as a team you have to work together. At the same time as helping the downline, the upline must work his own share as well. In some cases, depending on the relationship within the team, the downline may opt to ‘wait’ for his upline so all can achieve the goal together without leaving anyone behind.
Proper team planning and relationship building is very important to prevent factors like sabotage (the upline deliberately ‘slowing down’ the downline to prevent breakaway).
In spite of the disadvantages of breakaway, it is very important for the upline to put in a lot of hard work. For example, if an upline sees his downline growing very fast, he will work harder to generate more product sales so he will be eligible for bonuses and also ‘catch up’ with his downline.
Starting a New Company
Breakaway has his advantages and disadvantages. The advantage is that it rewards distributors for hard work. Whoever recruits more or moves more products gets more rewards. This is very important for the company as you don’t want to pay out unnecessary commission to free-loaders. The disadvantage as the company, you must strike a balance between to fairly reward all parties. This is tricky and requires planning.
Next post is: Infinity Bonuses & Blocking plus a summary of all the posts so far.
Until then, later…