Stair Steps is one type of a MLM Marketing Plan. It is shown usually after the Retail Profit section.
The position or percentage goes up as the sales goes up. Its just like climbing a set of stairs. When a distributor achieve 250PV, he is a 3 % ter. (Three Percent-ter) as shown above.
What is PV?
PV stands for Point Value. Some other names are like BV (Business Value or Business Volume), eV (electronic Value). Some company may call it CV.
How PV works?
PV derived from the amount of sales generated by you and your group. 0.50PV could equals to $1.00, which means if you purchase $100 worth of products, your Point Value is 50PV. Some MLM company calculate it as $100 equavalent to 100PV. It varies from one product to the other and from one MLM company to the other. The bonus or income are calculated based on the PV for the month.
There are 3 ways how we work out this plan.
1) Accumulative
After you reached a sales of 250PV and created a sales of 650PV this month, which comes to a total of 900PV, you are a 6% ter. Perhaps they may call you a position, "Two Star". If you do another 850PV, you will reach the 9% mark. As you keep on doing your sales month after month, at your own sweet time, you know that you will eventually reach 12,500PV sales, at 21%ter (Eight Star position)
2) YoYo
The percentage of sales for each month is not certain. It depends on the sales you generated in that particular month. If you did a 250PV on the first month in the business, you are at 3%. When you did another 650PV, you are still at the 3%. The reason is because you start from zero each month. Only when you did a 900PV in a month, then you are entitle for the 6%. You know how YoYo is played. Up and Down.
3) Combination of both
Your sales accumulated, lets say from 250PV up to 9500PV. But from sales of 9500PV to 12,500PV is a YoYo.
So you may be at 21% this month, next month you could drop to 18%.
Authored by kevinn on 29th June 2009
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