MLM – Multi-Level Marketing
Multi-Level Marketing – Commissions are paid to sales representatives/distributors based on direct and indirect sales linked by sponsorship.
Compensation Plan – The way the sales representative or distributor is compensated or commissioned for direct and indirect sales made in their organization.
Direct Sale – A direct sale is made when a rep or distributor sells the product or service themselves.
Indirect Sale – An indirect sale is made when a person you sponsored or is a rep or distributor in your organization makes a sale.
Organization – All the sales reps, distributors and customers linked by sponsorship from your downline.
Downline – All the reps, distributors and customers you sold directly and then sold indirectly by the reps or distributors linked by sponsorship under your business tracking center.
Upline – The person that sponsored you starts your upline. This upline is linked to each person’s sponsor above you until linked to the Company.
Business Tracking Center – A position in the computer’s data base owned by the Company to compile and report the rep or distributor’s sales, qualifications, genealogy, calculate commissions and store personal information.
Genealogy – This is a road map of all the reps or distributors who are activated in the company computer starting with your tracking center.
The genealogy can be viewed on the Internet through the company replicated web site.
Activation – A tracking center is activated through a sale or purchase of the Company’s products or services.
Qualification – Under the company compensation plan there might be a need to qualify to receive commission. These qualifications could be monthly, quarterly or yearly. They could be in PSV, CSV, personal sponsorships or ranks achieved.
PSV – Personal Sales Volume is what you have purchased or sold to customers who are not reps or distributors of the Company.
CSV – Commissionable Sales Volume – The Company will assign a sales volume credit to each product or service. The total sales volume sold by you and your organization is then calculated and percentages or steps are paid.
Unilevel – Compensation Plan - Personally sponsor as many people on your 1st level, unlimited width. There is a limited depth in the amount of levels below level one of each active rep or distributor the company will pay a commission on indirect sales. All levels are unlimited in width.
Matrix – Compensation Plan - The 1st level and all level of activated reps or distributors below the 1st level are limited in width. The depth of commissionable levels is also limited.
Binary – Compensation Plan - An activated tracking center has only two legs, a right and left leg. Once a qualification is met and commissions can be paid there are generally steps on direct and in direct sales or sales volumes required on each step to receive a commission. When all the sales steps are completed and the total amount of commissions is paid on those steps, the tracking center has cycled. The tracking center is reset to start to recalculate commission steps again and again.
2 Up – Compensation Plan – The first two people you personally sponsor are credited, linked to your personal sponsor’s tracking center and the sales commission is paid to your sponsor. You then start to sponsor as many people as you can to your tracking center. Sale commissions are paid to you on the 3rd personally sponsored person you sponsor. Every personally sponsored person of yours, starting with the 3rd, will give you their first two personally sponsored who in turn will give you their first two personally sponsored people.
Sideline – You are in a Company’s downline leg linked by sponsorship all the way to the Company and down through your personal organization (downline). Other Reps or distributors in the same Company who are not linked to your personal downline are considered sidelines. Even though they are in the same Company they do not affect your commission.
Crossline – When a rep or distributor has cross lined, they have joined again in another leg under a different sponsor other than the leg they were first sponsored to. This generally is against the Company rules.
Business Plan - This is a simple layout of the STEPS you are going to use as a guideline in establishing your business. Progress with us, and you will be learning how to modify your Business Plan to make it more efficient. We will provide the guiding materials through the initial steps, but as the Boss, you will make the final decision what the plan includes, and how it can benefit your Affiliates.
Center - A convenient meeting place where current and new sales ideas, new product ideas and informational materials are available.
Depth - The number of levels deep within the various stages of your downline.
Affiliate - One who has signed an Affiliate agreement and acquired the basic marketing materials.
Affiliateship - Normally consists of:
1. A single Affiliate;
2. A partnership (may be husband and wife);
3. A sole proprietor; or
4. A corporation.
Duplication - The act of educating your Affiliates to sponsor other people. You have heard the old adage that if you give a man a fish, you will feed him for a day, but if you teach him to fish, you will feed him for life. Replication of your efforts by new Affiliates is the backbone of our industry.
Front Line - Your first Level; The Affiliates you sponsored.
Leg - Every personally sponsored Affiliate becomes a "Leg" in your organization. A Leg can therefore consist of one person, many, hundreds, or even thousands of people.
Prospect - Someone you feel would be an active and dedicated Affiliate.
Sponsor - The person who introduces you is responsible for instructing you in becoming a productive Affiliate. This qualifies you to receive a bonus based on your group’s sales volume. It is the concept of SHARING in its purest form.
Sponsorship - This is the introduction and formal signing on of a new Affiliate.
Synergy - It is the wondrous way in which the whole becomes greater than the sum of its parts.
Width - Your front lines. If you have sponsored eight, then you are eight Affiliates "wide".