DirectSellingStar

Glossary

Industry & companies

19 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

  • Alert

    A short email about a single recorded change at a watched company, with its source.

  • Attrition

    The rate at which participants leave a company each year.

B

  • Brand partner

    A newer title for a participant, emphasising social selling over distribution.

C

  • Crypto MLM

    Multi-level schemes selling cryptocurrency trading, education or tokens, frequently found to be frauds.

D

  • Direct selling

    Selling products to consumers away from a fixed retail location, usually through independent sellers.

  • Direct Selling Association (DSA)

    The US trade association for direct selling companies, with a code of ethics for members.

  • Distributor

    The traditional name for a participant in a multi-level plan; many companies now use other titles.

  • DSN Global 100

    Direct Selling News' annual ranking of the largest direct selling companies by revenue.

I

  • Income report

    DirectSellingStar's annual analysis of normalized income disclosure statements.

M

  • Market entry

    The opening of a new country by a direct selling company, often marketed as a ground-floor opportunity.

  • Multi-level marketing (MLM)

    A sales model where participants earn on their own sales and on sales made by people they recruit.

P

  • Participant count

    The number of people signed up as participants, as reported by the company.

  • Pre-launch

    A recruiting period before a company or market officially opens, with promises of early position.

  • Public company

    A company listed on a stock exchange, required to publish audited financial statements.

R

  • Retention

    The share of participants or customers who remain active over time.

S

  • Saturation

    The point at which a market has no more willing customers or recruits.

  • Shopping annuity

    A concept of earning cashback and commissions by routing everyday purchases through a company's platform.

T

  • Travel club

    A membership sold through multi-level compensation offering discounted travel.

W

  • Watchlist

    A DSS Pro feature: companies you follow, with a same-day email when something changes.