People at the very bottom of theeconomic ladder are often excluded, or exclude themselves,from microfinance. Their income is usually too low andunreliable to permit repayment of loans or investment inanything but basic food consumption. In some countries thevery poor are served by safety net programs, which usuallytake the form of cash transfers, food aid, or guaranteedemployment schemes. Starting in 2006, Consultative Group toAssist the Poorest (CGAP) and the Ford Foundation have beenexploring how a 'graduation model' can createpathways out of extreme poverty, adapting a methodologydeveloped by BRAC in Bangladesh. This brief discusses earlylessons from the implementation of the graduation model.