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 is a stairstep type of Plan, but I have seen it in others as well. I disagree. It is a good plan for those who work it.
The chief disadvantage of stairstep breakaway plans is the tendency for inventory loading. Unless the company aggressively monitors them, distributors will tend to coach their subordinate distributors to amass inventory to gain rank.