The Basics - The Traditional Vocabulary of MLM

Traditional Network Marketing (MLM), and it can be called a tradition now since it began in the 1940’s, has a vocabulary all of its own. Below are a number of terms used in MLM/Network Marketing.

Compensation Plan
The compensation plan is the way in which an MLM company rewards a Network Marketer’s efforts for getting customers and recruiting others who get customers.

Crossline
This has nothing to do with telephone MLM’s - It is a person who is in the same MLM company but is not connected to your upline or downline.

Distribution
This is the method of marketing and supplying goods and services.

Distributor
You, the person who has signed an agreement to distribute a product or a service for an MLM company.

Downline
This is one or more people you recruit to join your MLM company such as “Tim is in my downline.” It is also any person recruited by the person you recruited, such as “In my downline, Tim has recruited 4 people this month.”

Financial freedom
Being debt free and having the money to buy anythng you desire.

Frontline
This is a person you have personally recruited to join you in your MLM company. This person is also in your downline but there is no one between you and them.

Leader
This is a distributor who takes on the responsibility for training those in his downline and makes sure they are well-equiped for selling products to customers and recruiting others. In MLM leaders are made as they progress through the compensation plan. Their leadership skills are developed through training.

Multi-Level Marketing
A unique method of distributing a product to a customer.

MLM
The acronym for Multi-Level-Marketing.

Network Marketing
The word often used in place of the word Multi-Level-Marketing or MLM.

Organisation
This is your Downline.

Prospect
This is someone who is a potential customer and/or a potential distributor.

Recruit
This is enrolling or seeking to enroll somone as a distributor.

Sponsor
This is the person who recruited you into your Network Marketing business. “Tim recruited me last month.”

Team
This is your Downline.

Upline
This is the person who recruited you into your MLM company. “Tim is in my upline.” It is also the person who recruited that person and so on until you reach the MLM company.

I hope this clarifies some of the terms used in traditional MLM. It is not an exhaustive list but hopefully if you are new to MLM you will not be too confused.

All the best for your future success

Tim

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