DirectSellingStar

Glossary

Compensation & pay

23 terms, explained plainly. Where a term has a legal meaning we say which law; where it has a company-specific meaning we say to check the plan.

A

  • Active status

    The condition, usually a monthly purchase or sales minimum, that makes a participant eligible for commissions.

  • Autoship

    A recurring monthly product order, often used to meet activity requirements automatically.

B

  • Business volume (BV)

    A plan-specific point value used to calculate commissions, often lower than the retail price.

C

  • Cap

    An upper limit on commissions from a plan component, per period or per position.

  • Car bonus

    A monthly payment towards a vehicle lease for participants who hold a certain rank.

  • Chargeback

    The reversal of a commission when the underlying order is refunded or returned.

  • Cycle bonus

    In binary plans, a payment triggered each time a set volume is matched across both legs.

F

  • Fast start bonus

    A bonus paid on a new recruit's first order or first weeks of sales.

  • Flush

    The cancellation of unmatched or excess volume at the end of a pay period in binary plans.

G

  • Generational bonus

    A percentage paid on the volume of leaders' groups, by generation rather than level.

  • Grace period

    A window after missing a requirement during which rank or activity is kept.

  • Group volume (GV)

    The combined volume of a participant and everyone in their downline.

I

  • Infinity bonus

    A commission paid on volume to unlimited depth, usually only at the highest ranks.

M

  • Matching bonus

    A bonus equal to a percentage of what personally sponsored participants earn.

  • Monthly minimum

    The purchase or sales volume needed each month to stay active or hold rank.

O

  • Override

    A commission paid to an upline on volume generated by their downline.

P

  • Personal volume (PV)

    The point value of what a participant buys or sells personally in a period.

  • Pool bonus

    A share of a global pool, typically a percentage of company volume, split among qualifying high ranks.

Q

  • Qualifying volume (QV)

    Volume that counts towards rank or activity requirements but not necessarily towards pay.

R

  • Rank

    A title in the plan reached by meeting volume and structure requirements, unlocking higher pay.

  • Rank advancement bonus

    A one-time payment for reaching a new rank, sometimes paid in instalments.

  • Retail profit

    The margin a participant earns selling product to a customer above the participant price.

W

  • Wholesale price

    The price participants pay for product, below the suggested retail price.