INTRODUCTION

Multi-level marketing is a highly innovative and effective way of running a marketing company. It is a marketing technique that is reliant on people recruiting other people to sell a product or a service and then having those people recruit more people, thereby creating levels in the company. In other words, it is very much built on the idea of a creating a chain or a link between individuals across multiple levels with the ultimate goal of selling a product or a service.

Achievement Level

Achievement level is a form of rank or title that you can earn that is based on how much you achieve, either yourself or through those you have recruited to the company.


The achievement level in a multi-level marketing company is important in ensuring that those who have worked exceedingly hard to make sure that the company has drawn in the largest number of customers, thereby ensuring that the company has increased its revenue by a large amount, are recognised for these achievements.


According to Network Marketing Works, the achievement level acts as a rank that is very much based on your own performance or the potential that you saw in the person you sought to recruit making it an important marker for your success within a multi-level marketing company.

Active

Active is a marketing term that means that the company or business is in the process of taking some kind of action.


Active marketing is when the company or business is actively trying to take certain actions or steps to help their company or business grow or expand. This could mean that it is actively networking or that it is actively advertising in a purposeful way. According to Monica Patrick, this is the aspect of marketing that requires a deliberate amount of effort towards a particular goal. When it comes to multi-level marketing this could be any number of concerted tasks or efforts to increase your customer base. From meetings to cold calls to marketing to a specific audience in a specific way, all of these efforts fall under the umbrella of active marketing!

Affiliate marketing

Affiliate marketing is when you reward those affiliates who attract more customers to your product or service.


Affiliate marketing essentially means relying on other entities to bring in more customers to your business or company. According to Neil Patel, affiliate marketing can take many forms; today one of the most popular forms is that of simply advertising somebody else’s product or service on your own platform and getting a commission for every sale or lead that converts through your platform. The advantage with affiliate marketing is that is works on the basis of commision which means that you do not need to reimburse your affiliates unless they bring in more customers. This makes it a reliable way to draw in more customers without paying large sums of money with the possibility of no results.

Australian Binary Plan

The Australian binary plan is essentially a tri-binary plan without the restrictions or limitations that those plans usually have.


According to Epixel Solutions, the Australian binary plan is merely an extension of the binary plan where it has an additional, extra leg in addition to the left and right leg(s) that a binary plan has. This means that it is a modification of the binary plan or an extension of the tri-binary plan but without the limitations that those plans have on, for example, their working rules or how they decide upon bonuses. This makes the Australian binary plan a very attractive option for a compensation plan for a multi-level marketing company or business or organization.

Australian X-up Plan

The Australian X-up Plan is a plan where the sales get shifted up the line for each level.


The Australian X-up Plan, according to Epixel Solutions, essentially involves a person, in this instance X, reaching a certain target for sales and then having their sponsors make a profit off of these sales. The X-up plan continues on with each level this way thereby having each level dependent on their downline for their profits. So in the case of the Australian X-up plan, each distributor is entirely reliant on building their downline so as to ensure that they can make profits as their sales move up the line to their upline. 

Autoship

Autoship is the process through which shipments or deliveries to a consumer happen at regular intervals with automatic payment.


Autoship essentially ensures that products are shipped at regular intervals

(which are predetermined) and that the payments for these shipments are automatically administered accordingly. MBA Skool suggests that autoship is one of the few ways in which a company can bring in revenue on a regular basis without having to utilize extra resources to increase its marketing or advertising efforts. This is an effective way to depend on or use your existing customer base as autoship is usually entirely dependent on a standing order made by an already loyal customer who has tried and tested the product or the service you are offering. This is particularly important for monthly sale figures!

Balance Legs

Balancing legs is the process by which recruiters introduce new distributors into one leg to balance it against a far more profitable leg.


This is another term that is used when it comes to binary plans and there is an effort to balance the profits of the leg that is making more profits against the leg that is making fewer profits. In fact, according to Pro MLM Software, balancing legs as a process is considered as one of the disadvantages of having a binary plan as it is usually very difficult to carry out effectively. So, in short, balancing legs is as the name suggests, a way to even out the differences between two separate legs of the same multi-level company or organization.

Binary plan

A binary plan is a multi-level marketing organizational structure that involves each member of the structure having a branch to their left and to their right.


DCR Strategies describes a binary plan as a model that is often used in multi-level marketing where essentially each member of the organization is connected to two other members (one on each side), resulting in a tree-like structure. It was introduced as a structure late in the 1980s and has gained prominence more recently, making it a highly popular organizational structure when it comes to multi-level marketing. This is representative of the binary compensation plan which is a type of compensation plan where you restrict your frontline to only two people and then have weekly payouts to either one of the two branches of the company.

Board Plan

In multi-level marketing a board plan refers to a compensation plan whereby board members can make profits off of each and every sale that is made.


According to Epixel Solutions, a board plan can take various forms, usually meaning a multi-level company having a board comprising either 3, 5 or 9 members each. These members are they not only entitled to make money off of every single success of the company or organization that they are a part of, but they are also eligible to other perks that are a result of bonuses or because of their loyalty to the company or organization. Thus, this could be a lucrative option for those members of a multi-level marketing company or organization that are sitting on the board of that organization!

Bonus

A bonus is a scheme by which an employee receives a certain reward for achieving a predetermined number of sales.


A bonus scheme can be a great motivating factor when it comes to employees in a company. It encourages employees to work harder with the knowledge that there is a tangible, guaranteed reward at the other side of all of their effort and hard work. As a result of this, employees are often motivated to improve their sales techniques or any other skills that are important to their jobs in order to achieve their goals. MBA Skool highlights the fact that bonuses can come in different forms, namely, cash bonuses, gift cards or even corporate gifts. This also extends to share schemes and flexible benefits. Regardless of the form in which the bonus takes, it is an effective way to improve productivity.

Breakaway

Breakaway is a type of multi-level marketing payment plan that allows a person to “breakaway” from their upline once they are successful enough, in order to keep a larger share of their profits.


A breakaway plan essentially allows a salesperson to split with their upline once they have managed to gain a certain position or standing in the company. This means they are no longer beholden to the person who recruited them in the first place which also means that they no longer have to share their profits with that individual. The breakaway plan is a great way to motivate employees to form their own small organizations. However, one disadvantage of this plan, as outlined by DCR Strategies, is that it doesn’t necessarily encourage teamwork which is crucial to a successful multi-level marketing endeavor.

Cold marketing

Cold market refers to the market that extends beyond your immediate circle of contacts, namely your friends, family and associates.


Having a relationship with your customer is of utmost importance when it comes to running any kind of business or company. Very often, the first point of contact for customers is people you already know; friends, family, colleagues or acquaintances. However, when it comes to marketing it is extremely important to forge connections with a larger audience that consist of people you do not actually know, so as to be able to expand your reach, and this, according to MBA Skool, is referred to as the cold market. One of the most effective ways to have a strong customer base is to mix your cold market with your pre-existing warm market.

Commission

A commission is the percentage or amount you earn from the sales of the product or service of your multi-level marketing company or business.


Essentially a commission is a form of remuneration as outlined by MBA Skool. In the case of a company or a business it is usually the percentage a salesperson gets from the number of sales of the product or the service they are selling. The amount or percentage that a commission is or the rate of the commission is usually, decided beforehand by the company or business. In a multi-level marketing company or business, usually a salesperson receives a commission on not only their sales but the sales of the person they have recruited and the people they have then recruited in turn (their downline).

Compensation plan

The compensation plan is a way to decide how much of an incentive or reward the direct seller is entitled to based upon the turnover they have achieved.


Compensation plans can be administered in a few ways. To begin with, this could be through paid on generation(s), as pointed out by MLM.com, which means that either the direct seller is incentivized on their personal purchases or the direct seller is incentivized based on those sellers that are directly connected to them or this extends over multiple generations.  Compensation plans can also be executed through level, ranks or titles, or through the frequency of payouts (weekly or monthly). Compensation plans (also referred to as payment plans) often dictate the way in which the multi-level marketing company or business is going to function and provides it with its inherent structure.

Compliance

Compliance in marketing means that your company or business abides by the rules and regulations put forth by the government.


Marketing compliance, according to PerformLine is essential to ensure a strong relationship with your customers or consumers. It is necessary for making sure that your reputation is intact and that you are a brand that your customers and consumers can trust. Marketing compliance requires you to know what is and isn’t permitted or allowed by those governments or governing bodies that are pertinent to the product or service you are selling. This is extremely important for any company or business but more so when it comes to multi-level marketing as multi-level marketing when manipulated can resemble scams which are considered to be illegal. 

Conference call

A conference call is a call between more than two people held at the same time.


A conference call, which according to Techopedia, is a call involving multiple participants, is an important tool for the functioning of any business. It is one of the simplest ways to make sure that operations are running smoothly and that there is no miscommunication between one or more members of the company. It is an easy and effective way to make communication across levels and across fields of expertise that is key to making the company as efficient and high functioning as possible. When it comes to multi-level marketing that is so reliant on relationships built between different levels of a company, conference calls are all the more important for the business!

Consumption

Consumption refers to the total amount of goods or services that have been consumed in a given period of time.


Consumption, which is the consuming or using up of goods or services according to My Accounting Course, is one of the key indicating factors of success when it comes to any kind of business or company. It is often the true marker of how successful or not a particular product or company has been. This in turn, can reflect on the customer base and inform future decisions regarding the sale or marketing of the product or service as it can highlight the success or failure of previous strategies. This makes consumption an important factor to keep an eye on when it comes to marketing of any kind. This is one of the most basic concepts to grasp within the field of marketing.

Convention

A convention is an organized meeting where people come to discuss a particular common or shared interest.


Convention marketing can be a highly effective way of marketing. It is a great way to demonstrate what your company or business brings to the table with the product or service you are offering. According to HealthEconomics.com, it is also an excellent place to find people who could form your customer base and is, therefore, the ideal place to network. To make convention marketing as effective as possible requires you to think about not just the convention itself but how you are going to prepare for it and then follow up after it. Convention marketing is just another way to creatively market whatever it is that you are selling!

Cost Per Click (CPC)

Cost per click refers to the cost that an advertiser incurs when their ad is clicked on a website.


According to MarketingTerms.com, cost per click is when you make money just because someone clicked on something you were advertising; this is regardless of whether or not they then buy this product or service you were advertising in the first place. The cost per click is determined by the advertiser and is entirely based upon what they choose to separate as their marketing budget. In other words, when someone clicks on an ad, the advertiser has to pay a certain amount of money to the owner of the product or service. This is one of the most important transactions when it comes to multi-level marketing businesses or companies.

Cost Per Lead (CPL)

Cost per lead is when an advertiser pays when a customer specifically signs up and thereby shows interest in the product or service being advertised.


According to MarketingTerms.com, cost per lead is one way to ensure guaranteed returns. Unlike other forms of advertising, when it comes to cost per lead, the amount of money you make is more definitive as it is based not just on views of that which you are advertising but the explicit interest that a customer shows in the product or service you are offering. When it comes to cost per lead, the advertisers are able to grow their customer base by getting the interested customers’ contact details, namely their names, email addresses and other relevant information. This makes it an integral part of the strategy of many companies when it comes to their marketing efforts.

Cost Per Sale (CPS)

Cost per sale is the fixed amount of money that a specific business activity costs.


According to WordStream, cost per sale refers to the amount of money it takes to carry out one unit of a specific business activity, thereby making it easier to predict or budget the company’s money. Cost per sale is an important unit of measurement for all companies and businesses as it is an accurate and important way to keep track of all of its transactions and how much money the company is spending; or, rather, could be an indicator of how much or how little the company needs to spend in comparison to how much it is already spending. This makes cost per sale another important tool when it comes to running a business or a company of any kind. 

Cross Recruiting

Cross recruiting is the process by which an individual tries to recruit members from one multi-level marketing company to another.


According to aceandrich.com, cross recruiting is by and large an illegal practice. It essentially involves someone trying to lure people involved in another multi-level company to another separate multi-level marketing company. This seems like a good option as usually people who are a part of multi-level marketing companies share skills and common interests or goals. However, this is considered an illegal practice and is a cause for concern. In other words, members of multi-level companies or organizations should refrain from trying to cross recruit members from other similar organizations or companies.

Crossline

Crossline refers to a distributor who is in the same company and was recruited by the same person who recruited you.


Crosslining is something that most companies or businesses try to avoid or something that they tend to be wary of. According to Informative.in, it involves people who are on the same level but in actuality have no shared business. This means that in order to protect yourself and your specific business interests, you are not supposed to share any information with your crossline because of the fact that you have common goals as you are on the same level in a multi-level marketing organization. In other words, though you are allowed to interact with them it is in your best interest not to discuss business matters with people in your crossline.

Customer Base

The group of people or entities who buy the product or service your company is selling is called a customer base.


The customer base is what companies often rely on the most. According to MBA Skool, they become the company’s target audience and the become the group of people or entities from whom they expect to make the most amount of revenue. As a result of this, it is very important to be loyal to your company’s customer base and to make sure that they are being well looked after. This can involve expanding or growing your pre-existing customer base or making sure that your existing customer base is still your top priority. Either which way, having a large, reliable and expanding customer base is of utmost importance when it comes to selling any product or service.

Dadpreneur

A dadprenuer is usually a man who takes care of his children and runs a business or company simultaneously.


According to Entrepreneur.com, a dadpreneur specifically refers to men, typically, who are both the primary caregivers of their children or raising their children and running a company of their own. Raising children is an all-encompassing job that requires a huge amount of energy and time, and running a business or a company is also very challenging. Dadprenuers are those fathers who are managing to do both at the same time, which requires attaining a work-life balance. Both dadprenuers and momprenuers should be applauded for the work that they do given the fact that the existing system does not make concessions for full-time working parents!

Depth

Depth refers to how many levels your multi-level marketing company has to it.


According to MLMOnlineCommunity.com, depth is a sign of how large or small your multi-level marketing company really is. It demonstrates how far the company has expanded in relation to how many levels it has; in other words, it is also demonstrative of how many people work at your company, thereby outlining how small or big your company is. The depth of your company can be both a positive and negative depending on how much you want to expand it, however when it comes to multi-level marketing depth is definitely a sign of strength. So, in other words, the depth of your company or business is directly correlated to how much it has expanded.

Direct Selling

Direct selling involves the sale of products to customers or consumers in a setting that is more direct or non-retail in nature.


Direct selling includes many different types of selling techniques that do not involve an environment that is specific to a retail setting. This could include sales taking place at people’s homes or even at their offices. To be more specific, direct selling involves non-store locations and creates an environment where the consumer is often face-to-face with the seller or the distributor. Direct selling has many advantages to it, namely, as The Balance suggests, that it is a more inexpensive way to reach customers and can be done with little to no barriers. This makes direct selling a lucrative and popular option for multi-level marketing companies or businesses. 

Distributor/IBO

A distributor can be defined as someone, an individual or an entity, who plays the role of selling or distributing a product or a service of a multi-level marketing company.

 

When it comes to distribution, you have to first find people who you are able to distribute to. This means that you have to find yourself a market. In general, many multi-level marketing companies have some sort of mechanism in place to find leads into markets. This could mean that they pay a lead generation company to help them find these markets or the company itself spends a huge amount of money on lead generation that then results in your blog becoming more visible, thereby attracting buyers. In other words, according to MBA Skool, a distributor advertises the product or service of the multi-level marketing company and then sells this product or service for a certain amount of money. 

Distributor Agreement

A distributor agreement is an agreement between two parties that stipulates both their respective responsibilities in the form of a contract.


A distributor agreement, according to TechTarget, it is absolutely necessary so as to ensure that the relationship and the terms set out are legally clear, thereby making sure that the responsibilities for each party are laid out right at the beginning without causing any confusion later on. Businesses and companies are built on contracts such as these and multi-level marketing businesses or companies are no different in this regard.  In fact, in the case of multi-level marketing, which is very much based on relationships between individuals, these agreements are even more important in determining who is in charge of what. 

Distributor Kit

A distributor kit is a kit of materials given to a distributor of a company so that they have all the materials they need in order to distribute or sell the product or service on offer.


A distributor kit is an underrated tool that all distributors need in order to be able to best present the product. Very often, the distributor kit is the first point of contact for the distributor to the company or business they have become a part of. It contains the materials that will represent the company or business to the people who are responsible for re-representing the company or business to other people in turn. The distributor kit usually contains materials that, according to MLM.com, not only detail the distributors’ responsibilities but also materials that will prepare them for their job. 

Downline

The downline extends to any people or individuals you have helped bring into a multi-level marketing company after you have joined it and the people they have brought in in turn.

 

The downline, according to Network Marketing Works, are the people who you have brought into a multi-level marketing company and therefore, in essence, if there was a list, their names would appear after your name on that list. The downline is, therefore, a term that refers to anyone who has joined the company after you and have most likely been recruited by people you yourself have recruited! It is a way of keeping tabs or referring to the chronological hierarchy of a multi-level marketing structure. This is an important term to know when it comes to the terminology surrounding multi-level marketing. 

Duplicatability

Duplicatability is the extent to which the multi-level market can be replicated by a group of new people or new recruits.


When it comes to marketing, according to Network Marketing Works, duplicatability is one of the most important factors to determine how successful a particular marketing strategy or technique will be. Those strategies or techniques that have duplicatablitiy and are moreover, highly effective, are the best possible strategies or techniques your company could use. This is because when it comes to multi-level marketing, in particular, your downline is going to want to replicate any of the strategies you employed and this should be completely doable for them. So if the strategies or processes you are using can be re-created then it means that more people will be able to take it forward.

Duplication

Duplication is when you take those skills and strategies that have been successful and duplicate them.


Duplication is probably one of the most important factors when it comes to multi-level marketing since it is very much based on the passing on of information or tasks. If you don’t have skills or strategies that you can duplicate so as to continue to achieve your goals, then you will not be able to have a successful company. According to Vineet Gupta, this is particularly important as whatever you do, your team will replicate. Duplication is different from duplicatability as it is the actual act of duplicating these actions that is called duplication, whereas duplicatability is the extent to which it is actually possible to duplicate those actions.

Edify

To edify or edification is simply positively representing your upline, downline or company in general.


To edify, or the edification of your company or business, is an important aspect of running any kind of business or company. According to OnlineMLMCommunity.com, it involves representing your company or business in the most positive way possible, without misleading anybody. Edification is important regardless of the direction in which you are doing this, to your downline or to your upline or anyone else who wants to be involved in your enterprise. This makes it easier for people to work together and to get the best possible impression of your company or your business.

Enroll

The term enroll specifically deals with the act of registering or signing up formally through a legally enforceable contract (written) which allows you to join a direct selling business through its various forms.


To be more specific, to enroll is to undertake a legally binding written contract to join the company as either an individual or as a participant or even as any kind of entity. This includes any names that are defined or referred to as the direct seller. So to be more clear, to enroll is to simply highlight the fact that you are formally choosing to be a part of a particular group or organization, or in the case of multi-level marketing, a company or a business.

Ethical

When it comes to multi-level marketing, the term ethical means to that the business does not intentionally cause distress to anyone and instead works to improve other people’s lives.

 

According to OnlineMLMCommunity, multi-level marketing requires extra effort to conduct themselves ethically. They do this by ensuring that they are not associated with scams or pyramid schemes and make sure that those individuals working in their companies are trained to be as ethical as possible in their dealings. This also means following the procedures and policies that have been laid out by the company or the business and ensuring that all aspects of the business or company are run properly, without breaking any rules or laws.

Familypreneur

Familyprenuer refers to a family that conducts, involves, or owns or runs a business with other family members.


Familyprenuers is a term that is often bandied about in reference to families that have started and run businesses together or those people who have involved their families to run their businesses or people who are grooming their children to take over their businesses. This is probably one of the most popular and common examples of businesses as more often than not, family members tend to go into business with one another due to common interests or due to the fact that there is a real element of trust. Some of the most successful businesses in history have been familyprenuers. 

Financial Freedom

Financial Freedom can be defined as someone being free of debt or being able to do or buy whatever they want without any restrictions.

 

When it comes to multi-level marketing, there are a number of companies that will offer financial freedom and this often is the draw of working in a multi-level marketing company. They often offer this through a number of tasks or duties. With multi-level marketing, where you can not just rely on your own sales but also rely on commissions from those recruits you brought into your downline, it is one of the few employment opportunities where you can count on to have partial if not complete financial freedom. However, it is important to keep in mind that financial freedom is difficult to attain regardless of whichever profession you pursue but is definitely worth it in terms of how much stress it can relieve, according to Dave Ramsey.

Follow-up

To follow-up means to repeat or continue with something that has already been started or to build on it.


In the case of running a business or a company, especially when it comes to something like multi-level marketing, follow-up is a crucial stage in the process of building up your network. According to Todd and Leah Rae, when it comes to follow-up it is always best to be on time, to be specific about how and when you are going to follow-up and also ensure that the follow-up does not happen too long after your first interaction with the customer or anyone else who wants to be involved in your company or business. Therefore, follow-up is a significant factor when it comes to growing your company!

Front-line Distributors

When you get into multi-level marketing, the people who you recruit or hire directly are referred to as your front-line distributors.


Front-line distributors have an extremely important role in the structure of a multi-level marketing company. They are often the group of people from who you are likely to obtain the most amount of revenue as that is where you will get the largest percentage or cut of the profits from. In fact, according to CatalystMLM, most of the compensation plans that multi-level marketing companies have are based on the extent of your front line or rather how many people you have been able to recruit to your front line. This makes the front line specifically important to the person who has recruited them.

Funded Proposal

A funded proposal is when in exchange for their time you offer your leads or potential customers something of value.


When it comes to marketing and multi-level marketing in particular, having a funded proposal, according to MLM Marketing System, is nothing short of essential as it is the best way to attract larger numbers of potential customers that could become a part of your customer base. At the end of the day, with funded proposals, you can be sure that those customers who are taking you up on this offer will continue to be customers and buy those products or services that are more expensive at a later time. As a result of this, funded proposals are key to the success of your multi-level marketing endeavor.

Garage Qualified

When you store the excess of the minimum amount of the product you have to buy to remain a part of a multi-level company selling that product, it is called being garage qualified.


When you join a multi-level marketing company, according to LaConte Consulting, in order to remain a part of the company often you have to buy a certain amount of the product each month. If there is anything left over from what you buy, after you have sold whatever you have been able to sell, that you then have to store in your home (usually your garage), then this phenomenon is referred to as being garage qualified.

Genealogy

Genealogy refers to those list of contacts or of distributors from multi-level marketing companies that are no longer in existence.


OnlineMLMCommunity.com indicates that you can usually purchase genealogy lists from companies that have shut down and these lists contain contact details and other relevant information regarding the company and its community. Genealogy lists can be extremely helpful or they can be a complete waste of your time and money so be sure to do the requisite amount of research about not just the pros and cons of buying a company’s genealogy but also whether or not you want that specific company’s data or if it is going to be helpful to you in any way.

Generation Plan

A generation plan is a type of compensation plan in multi-level marketing where each level or generation is encouraged to sell their product and this is how the distributor makes their profit.


In essence, a generation plan is a plan that emphasizes each generation or level per distributor. According to mlmyug.com, this means that the manufacturer and the sellers share the cost of advertising and the distributor makes their profits from their particular downline, and that this continues with each generation. This is why this plan is referred to as a generation plan. This plan is considered to be one of the compensation plans that will make you a substantial amount of money. However, it is always better to be cautious when it comes to any multi-level marketing company or organization as it could mean any number of things.

Goals

Goals are the end result or the final result that you or the company are aiming for.


Goals are extremely important in setting out a specific, attainable result that will help you and or the organization approach tasks in a more focused fashion. Goals provide the structure and planning that a multi-level marketing organization needs to reach its full potential. It is worth mentioning, as LaConte Consulting puts it, that the goals of your multi-level marketing organization should not only be attainable but they should also be specific and should adhere to a schedule. In other words, a marketing enterprise cannot really exist without tangible goals, making goals an important factor in determining the success of a multi-level marketing organization.

Group Volume (GV)

Group Volume or GV refers to the total amount of wholesale purchases made in one month by your personal group within a person’s downline.


When it comes to multi-level marketing, it involves not just you by yourself but also your team; in other words, according to Network Marketing Works, it also includes your downline or those distributors whom you recruited and the people they recruited in turn. Group volume not only includes your own personal sales but also includes the sales of all the people in your downline. This is also another way to decide on how compensation is going to work for your business or company.

Home Meetings

As the name suggests, home meetings are when you conduct your business meetings at home, usually at the distributor’s home.


There are many advantages to having home meetings when it comes to multi-level marketing. According to Ray Higdon, home meetings are the most effective when the company members or team members are trained, for example, they are punctual to all the meetings despite these meetings being held at home. In other words, home meetings can be seen as being informal in nature and thereby not as productive or conducive to the goals of the company. However, in reality, they can be effective if they are well planned and executed! So when it comes to multi-level marketing endeavors, don’t shy away from the potential of home meetings!

Hybrid plan

A hybrid plan is a combination of two or more different types of compensation plans.


According to The Balance, a hybrid plan can be a combination of unilevel, breakaway, matrix or binary compensation plans. It is a compensation plan that includes the characteristics of two (or more) these different plans. The different compensation plans are differentiated based on the structure of the multi-level marketing company or organization and how they choose to reward their members. The advantage of a hybrid plan could be that it takes the positives from these other compensation plans and combines it to form a compensation plan that benefits everyone who is a part of the multi-level marketing organization.

Incentives

According to Cambridge dictionary, an incentive is offering a reward or a prize to advertise a product or a service so as to attract buyers.


Incentives are the best and most effective way to motivate a workforce. However, it is no different when it comes to the customers of a multi-level marketing company or business. Incentives are one of the best ways to attract the attention of customers so that they feel that they are gaining more than they are paying for. This is also one of the most effective ways to solidify a loyal customer base as they will keep coming back to buy your products and services as long as you make it worth their while!

Independent Distributor

An independent distributor is a distributor who is not an employee of the company or organization but rather performs services for the company but is not answerable to the company in terms of the methods they employ.


An independent distributor is a part of the multi-level marketing company or organization but is not an employee per se. Independent contractors are able to figure out and use their own methods to carry out the service they were hired for and are only answerable to the company, according to LaConte Consulting, in terms of the results of their job. This provides distributors with more freedom when it comes to their jobs with multi-level marketing companies.

Inventory Loading

Inventory loading is a practice whereby a person is required to buy the products that cannot be resold within a certain period of time so as to maintain their status within the organization.


According to MBA Skool, inventory loading definitely increases the sales or the overall revenue of an organization but can be quite detrimental to the individual member of the organization who is essentially left with no option but to buy the products. However, sometimes companies offer some kind of benefit or reward to these individuals if they partake in inventory loading or sometimes there are benefits for these individuals that manifest later on. In general, however, most multi-level marketing organizations probably try to avoid inventory loading as a practice.

Lead

A lead refers to an individual or an entity that has shown some interest in the product or service you are selling in one way or another.


Having a lead is often a much better way to attract potential buyers when it comes to multi-level marketing as it deals with people who are already somewhat interested in the product or service. According to Maadan Consulting, you can use leads to build newsletters or for building a list to expand  your customer base with people who are likely to be interested in what your organization has to offer. Finding and attracting leads is an effective way to gain more customers or interest in your product or service that could eventually actually lead to it being purchased!

Lead Generation

Lead generation is a process or method that involves drawing potential customers to a certain service or product.


Lead generation is usually used for those people who have already shown some interest or an inclination for the product or service you are trying to get them to pay attention to. These people, often strangers, are in fact the “lead”. According to Lindsay Kolowich, lead generation is a way to warm-up future customers so that ultimately they will buy the products or your services that you are offering. This means that lead generation is using strategies to create these leads who might eventually become a part of your customer base.

Lead Prospecting

Lead prospecting is the method or process of figuring out which of your leads will turn into actual buyers.


Lead prospecting helps you separate leads that might result in nothing at all from those leads that are actually going to become a part of your customer base and increase the sales for your multi-level marketing company or organization. So lead prospecting helps you find those leads that are going to turn into customers and it does through a number of different ways which can include, according to MBA Skool, cold calling or door-to-door calling. Like with any other process, it takes time to figure out which lead prospecting techniques work best for you and the product or service you are offering.

Leader

Someone who is a high achiever or has performed exceedingly well in the multi-level marketing company downline.


Like with any company, within a multi-level marketing company there are a number of individuals who stand out for their exceedingly impressive performances. This makes them a leader in their specific field or in their specific line as it identifies them as someone who can potentially lead or teach the other individuals who are in the same position as they are. So, to be more concise, according to a Network Marketing Works, a leader is someone who has achieved a certain level of success within a multi-level marketing company or organization through their particular efforts.

Leg

A leg refers to a subset or a line within your own downline.


A leg, according to Network Marketing Works, is usually a section within your downline that is most likely headed by someone from your front line or someone who you first recruited. It is a way of describing the smaller branches within your larger branch of the company or the business that is still within your group. It actually refers to or highlights someone from your front line’s down line. Therefore a leg is a way to identify a smaller part of the company or business or a microcosm of your group within the company or business. It is helpful terminology for when you are trying to pinpoint a specific section within your group or down line.

Level

A level is a vertical representation of a part of the company or business or rather it represents a step in the ladder of the company or organization.


In a multi-level marketing company or business, one of its defining characteristics are the different levels or steps within the company or business. For example, someone who was recruited by someone who was in the same position as you, is on the same level as one of your direct recruits, according to Network Marketing Works. This is a way to create a hierarchy or differentiate between people in different positions across the company or business. It provides the outlining structure of the company and where people fall in relation to one another.

Marketing Materials

Marketing materials include research data, promotional material, display material, advertising material and training material that pertains to the product or the service being sold.


According to DefineTerm.com, marketing materials covers the entire gamut of materials required to market a product or service. This includes not only research data but also extends to product literature, sales information, customer information, designs, charts, diagrams, photos, electronic files, all audio, digital, visual or print material that are in any way, shape or form relevant to the marketing of a product or a service. This means that marketing materials make up almost all of the papers or objects that are required to sell a product or a service, thereby making it essential to the marketing process. 

Matrix

A matrix refers to particular organization of symbols, letters, numbers or even entities.


According to Cambridge Dictionary, a matrix is a unit which helps solve mathematical problems. When it comes to multi-level marketing, a matrix is usually in reference to the organizational structure of that multi-level marketing company or organization. In other words, it refers to how the organization is structured with all of its members or distributors; how many distributors or sellers are allowed in each level or how many legs are allowed per distributor and so on. The most common way in which this term is used in multi-level marketing is to refer to the compensation plan called the matrix plan.

Matrix Plan

A matrix plan is a predetermined payment structure with a defined width and depth for a multi-level marketing company or business.


According to DCR Strategies, a matrix plan is a payment plan whereby the structure is a certain combination of width and depth. For example, you can decide how many levels or the width the structure should have as well as how many people you can have on the frontline at each level. This is an effective structure to have to create an environment that prioritizes teamwork. The only real disadvantage of this payment structure is that it can limit the growth or the expansion of the company or business. Nonetheless, this can be checked with the introduction of other plans or structures, such as bonuses.

Momentum

When one action builds on the results of a previous action over a period of time, it is called momentum.


The best way to create momentum is to stick with the same actions over a long period of time so that they have the chance to build off of the results of one another. According to SelfGrowth.com, this requires a certain amount of perseverance and when it comes to multi-level marketing specifically refers to personal momentum. The best way to ensure momentum is to have a set routine or timetable for certain tasks that will help you build your company one day at a time and then to follow through on this schedule.

Mompreneur

A momprenuer usually refers to a woman who not only raises her children but runs a business at the same time.


As you can imagine, being a momprenuer is more than a full-time job! In fact, it is more like having two full-time jobs. According to Investopedia, this term refers to many women who are (often single handedly) not only the primary caretakers of their children but also run a business or a company alongside it. In the case of a momprenuer, very often it also implies that this person has set up her business or venture from the ground up. Being momprenuer is stressful and time consuming but is often the only way women can both work and raise their families in a system that does not make space for these two jobs to co-exists together!

Monoline Plan

A monoline plan is a multi-level marketing plan where each member is only given one leg each.


As Infinite Open Source Solutions LLP suggests, monoline plans are the simplest iterations of a compensation plan and are extremely easy to understand and follow because they literally consist of one leg per member. This means that the number of members per leg are predetermined or pre-decided and are therefore restricted. Monoline plans especially emphasize the need to continue growing your downline as your profits are entirely dependent upon this. Therefore, monolines plans are even more reliant on growing and expanding the multi-level marketing company or organization in comparison to other compensation plans.

Multi-Level Marketing (MLM)

Multi-level marketing is a form of direct sales where a person receives a commission from their own sales and a percentage from the sales of the person or people they recruit.


According to Investor Words, multi-level marketing can most accurately be described as a type of direct sales system. Multi-level marketing relies on each person persuading or recruiting more people to sell the product or service on offer, thereby creating multiple levels within one company or business. It very much relies on the ability of people to network to create the different levels and also to effectively sell the product, usually in an informal or non-store setting. 

Network Marketing

Networking marketing is a direct selling strategy that involves authorizing distributors or agents to distribute the company’s product or service.


Multi-level marketing is entirely dependent on network marketing. According to Network Marketing Works, network marketing, on the other hand, is dependent on the recruited distributors and agents recruiting new distributors and agents of their own. This makes network marketing a system that makes profits dependent on not just an individual’s own sales but the sales of the people they have brought into the company. This is how multi-level marketing is able to function at all! So it can be said that network marketing is, in many ways, the foundation of multi-level marketing and is essential to the process of setting up a multi-level marketing system.

Objections

In multi-level marketing, objections are concerns or hesitations raised by those people you are trying to recruit on behalf of the company or organization.


Objections can be discouraging when you are in the process of expanding your multi-level marketing community. They can take various shapes and forms but the best thing to do is to be aware of the different kinds of objections you might face and then be prepared to cope with them. For example, according to Nate Leung, some of the most common objections include people raising concerns regarding how much money they are likely to make or worrying about whether or not this multi-level marketing organization is a pyramid scheme or not.

Opportunity

An opportunity can be defined as a chance to be a part of a multi-level marketing distributorship.


According to MBA Skool, an opportunity in the world of marketing refers to an avenue or to demand that a company can take advantage of that is not already being addressed by a competitor in the field. This means that an opportunity is something that all businesses or companies should be on the lookout for. A market analysis is a great way to identify market opportunities as it gives you an idea of what is already being addressed and what gaps have been left in the market. This is an essential part of marketing as it gives you a good idea of where the product or service you are offering falls on a larger scale. 

Organization

An organization is defined as a structured group of people who are brought together to pursue a common goal.


It is worth noting that an organization is usually a structured or defined group of people. In the case of multi-level marketing, there are a host of multi-level marketing organizations that are structured groups with the common goal of selling a product or a service using multi-level marketing techniques. Some examples of highly successful multi-level marketing organizations include Amway, whose business or marketing strategy is entirely that of a multi-level marketing organization. So a company or business that employs multi-level marketing as its main technique is usually referred to as a multi-level marketing organization.

Overrides

In a multi-level marketing organization or business, when you earn a percentage from the sales of the people in your downline it is called an override.


An override is the cut or percentage you get from the sales made from all of the people in your down line. In other words, you get a percentage from the people you recruit and then a percentage from the sales of the people they recruit and so on; according to Inc., however, this percentage tends to decrease as you go down the levels of your down line. So overrides basically reference portions of your overall earnings within a multi-level marketing company or organization.

Party Plan

Party plan is a direct sales business model where you use a social event to sell the product or service you are offering.


Party plan is not only a way to sell the product or service your business or company is offering but it is also a way to gain sales leads; through this social event, you can ask other attendees to host more such events. In general, according to MLM.com, party plan has been used specifically for items, products or services that appeal only to women. For example, this includes cosmetics and jewelry, among other things. This is an extremely socially engaging form of marketing that is specifically used for multi-level marketing endeavors.

Passive Income

Passive income is receiving a regular amount of money with little or minimal effort to ensure it continues.


Having a passive income is one of the best ways to make a dependable amount of money each month with little to no effort. The entire point of passive income is to ensure that you can rely on a certain amount of money without the constant amount of attention a full-time job often requires. Today, there are more than enough opportunities for having passive income. According to Entrepreneur.com, this is because the world of online marketing is the perfect place to ensure that you get a consistent passive income that will help you keep yourself afloat, and if you are trying to start up a business or a company, it will be an important component to help you keep that running. So when it comes to multi-level marketing, having a source of passive income is key!

Payout

What a company pays to its distributors or the total percentage a company pays to its distributors out of its total revenue is called a payout.


A payout is often in the form of bonuses, commissions and overrides. It is essentially what the company or business has to pay its distributors from its profits or revenue, thereby establishing the amount of money that will go to all of its distributors as a whole. Distributors like to know the payout of companies or businesses so that they can see how much they will be able to earn as a distributor for that company or business, and so, according to The Balance You Need, this can influence their decision to join or not join a particular multi-level marketing company or business. 

Personal Volume (PV)

The total amount that you specifically buy from a company in a month at wholesale.


According to Network Marketing Works, your personal volume is the amount of the product you buy from the company at the beginning of each month at the wholesale price (since you are a part of the multi-level marketing company or business). This is essentially your stock of the product at the beginning of each month. Your personal volume refers to your stock alone and not that of your group. Buying a certain amount of this product is necessary to remain a part of the company or business as it shows that you have a vested interest in the organization.

Person-to-Person Marketing

Person-to-person marketing is a marketing technique that specifically involves those interactions between buyers and sellers that are usually carried out by some firm or middleman.


The benefits of person to person marketing, according to Dr. Sandeep Krishnamurthy,  are that it changes these interactions that are usually impersonal and seem to emanate from a distant source to something that is more personal in its nature. Person-to-person marketing thereby makes these interactions more effective by ensuring some sort of personal relationship between the buyers and the seller. This in turn helps the company, especially in the case of a multi-level marketing company, expand and grow.

Policies and Procedures

Policies are pre-decided courses of action for particular situations and procedures are the guidelines that help you execute these policies.


Policies and procedures are the foundation of any company. They are put in place to define roles from the beginning and to outline boundaries and limits beforehand. So policies and procedures help companies function more efficiently without the need for regular interference or interruption in its daily functioning. Given the potential for crossing legal lines when setting up a multi-level marketing plan, it is all the more important to set up a company or a business that has a strong set of policies and procedures for its employees to follow. It sets the tone for the new company or business and ensures that everybody knows what role they have in the organization.

Prelaunch

A prelaunch is a marketing technique that usually informs people on a large scale that a new product or service is about to become available at a specified date and time.


Having a prelaunch is an effective way to draw in customers for a new product or service. One of its main roles is to create anticipation and bring attention to the product or service before anyone has had a chance to use or experience it. According to InternetMarketing-Dictionary, this in turn makes people excited or motivated to be the first to try out this product or service, thereby encouraging more people to become customers and buy this product or service on offer. This makes a prelaunch an effective and important step in the process of setting up a new company or business.

Presentation

In marketing, a presentation is usually a visual representation or a pitch detailing the outline of a marketing plan.


A presentation is a key component in the world of marketing. It is one of the main ways to draw interest to your marketing ideas and to the product itself. According to Bizfluent, a presentation can take various forms, be it digital or otherwise. In general, strong marketing presentations tend to reproduce statistics on demographics and how their product fits into this data. The strategies of the company or business are also important in attracting more people to the business or company. To be more concise, the goal of a presentation is to increase sales.

Prospect

A prospect is a lead that is well on it’s way to becoming a customer and is in contact with the company.


It can be confusing trying to differentiate between a prospect and a lead but the best way to do so is to remember that a prospect is one step ahead of a lead. In other words, a prospect, according to Lead Fuze, is the next stage after a lead as it means finding a customer who is going to ultimately buy the product or service you are offering. This means that they are not just a potential customer but are already in the process of becoming one; they are already somewhat invested in what your company or business has to offer.

Prospecting System

A prospecting system is simply a way or a process by which leads are converted into customers or distributors.


According to OnlineMLMCommunity.com, a prospecting system is essentially a system that helps leads transform into actual customers or distributors that can become a part of your multi-level marketing company or business. Having a specific system in place is important as it can be a tried and tested model for changing leads into actual customers or distributors. Very often, prospecting systems are online or involve online platforms to work effectively. A prospecting system can be any combination of tools that you already have in place to increase your customer base.

Pyramid Scheme

A pyramid scheme is a type of business model where the people are recruited through promise of payments for recruiting other people instead of supplying the sale of a product or a service.


Pyramid schemes are often referred to as pyramid scams and are sometimes confused with multi-level marketing plans. According to many governments, or in many different places, pyramid schemes are considered unethical and illegal. However, pyramid schemes and multi-level marketing are two entirely separate entities. They both rely on recruiting distributors but in the case of multi-level marketing, according to The Balance, the priority is the product and selling the product whereas pyramid schemes are simply ways to recruit people for their money alone. As a result of this, it is important to differentiate between pyramid schemes and multi-level marketing plans.

Qualified

Qualified is the term usually used in reference to leads or prospects that are most likely to genuinely be interested in joining or buying from your multi-level marketing company or business.


Edmund Toh suggests that finding qualified leads or prospects is necessary to find the people who are going to become a part of your multi-level marketing company or your customer base. This means that ‘qualified’ can be used to describe not just those leads or prospects who want to buy the product or service you are offering but it could also be in reference to those people who you could recruit as distributors or sellers. Like with anything related to multi-level marketing, finding qualified leads, prospects or recruits is dependent on your networking skills.

Recruit

A recruit, in the context of multi-level marketing, is essentially someone that you have persuaded or convinced to become a part of the multi-level marketing company that you are a part of.


Multi-level marketing is essentially built on the concept of recruiting people to the job. According to Apolline Adiju, to be able to successfully build your multi-marketing company you need to have a recruiting mindset that will allow you to approach your prospects with confidence and surety in your product. Being able to recruit people to your multi-level marketing community is the only way that this company or business will grow. The people you recruit as distributors or sellers are who make up your front line and are the main people in your group.

Referrals

Referrals are when a business is marketed through the existing customer base, as opposed to traditional advertising techniques.


The process of referrals or referral marketing involves the already existing customer base referring the company or the business to other people. According to Marketing-Schools.org, word of mouth is a powerful tool when it comes to marketing and referrals are essentially marketing a business or company on the basis of word of mouth. For marketing a product or a service, the ultimate goal is to ensure a larger target audience so that you can grow your customer base. The process of referrals is one of the most common and potentially effective ways of drawing attention, and thereby customers, to the business or company so that you can then sell more of the product or service you are offering!

Renewal Fee

Renewal fees are the fees that you pay to renew your membership with the multi-level marketing company you are currently a member of.


When you first join a multi-level marketing company or organization, you will have to pay some sort of a signup or registration fee to join the company. A renewal fee is an amount that is paid to keep your membership status intact. According to Network Marketing Works, a renewal fee is an amount paid by an individual in order to continue to remain a member and distributor of the products and services of the company.

Replicated Website

A replicated website is a specific template for a website that is available to members of a multi-level marketing company or organization for their own use.


Replicated websites can be further edited or customized according to the needs of the specific members of the multi-level marketing company or organization. Navid Safabakhsh describes replicated websites as having the same HTML code but with different information. It is an efficient and effective way to ensure uniformity across the different members of the multi-level marketing company or organization.

Residual Income

Residual income is the income received through work that has already been conducted previously.


To elaborate, Nate Leung explains that residual income usually means that income which you make from those tasks or jobs that have already been done. For example, this could refer to sales that you have already conducted which could be in the form of monthly payments; you have already made the sale but still continue to get returns from it later on. In other words, the key way to gain residual income is to network in such a way so as to have regular customers who regularly buy the same product so that you do not have to do any additional work to draw in tons of new customers.

Retail

When it comes to multi-level marketing, retail refers to those people who you are looking to recruit who are interested in the organization but only as customers.


According to OnlineMLMCommunity.com, it is important to look for customers who might become a part of the organization as opposed to people who can become a part of the organization as distributors and then become customers to draw in more people. To put it more simply, retail refers to those people who may not necessarily be interested in becoming a part of the multi-level company as a distributor or a seller but are interested in the buying the product or service itself.

Retail Profit

Retail profits refer to the profits distributors or sellers get from the sales that they make.


When it comes to multi-level marketing, members of the organization or company earn profits a number of different ways. This could be from commissions from those people in their downline or from their own personal sales. Retail profit refers to that which distributors or sellers make from their own personal sales, not including what they might be making otherwise in the form of commissions or any other such means that come with multi-level marketing companies. According to wiseGEEK, this refers to the profit you make which does not include your expenses.

Retention Rate

Retention rate refers to the amount that a company keeps or retains after it has paid whatever it has to in terms of dividends.


According to MBA Skool, the retention rate of a company or an organization can be calculated as the difference between the net income and the dividends of the company, divided by the net income of the company or organization. This is one of the many measures used when it comes to marketing or multi-level marketing businesses or organizations, to decipher how a company or an organization is actually performing.

Shared Leg

‘Shared leg’ refers to the leg that is shared between a member and his sponsor.


A ‘shared leg’, according to Catalyst MLM, is the dominant leg that is not shared by a sponsor and his down line member. The dominant leg, on the other hand, is where the sponsor builds his line of members. Members added to the shared leg eventually contribute to your and the sponsor’s commissions.

Sideline

A sideline refers to individuals who are in the same place or level in a multi-level marketing company but are not structurally connected to one another.


According to First Class MLM, people who are sidelines do not usually make profits from each other’s sales as they are not actually connected to one another within the structure of the company or the organization. Usually, sidelines have a lot in common in terms of their job descriptions as they form the same level in a multi-level company or organization. However, because they are otherwise not connected they potentially have little to no contact with one another but are very much a part of the same company or organization.

Sign-up

A sign-up refers to individuals who have agreed to join the multi-level marketing community upon being approached by someone who is recruiting for the company or organization.


Finding an individual who will become a sign-up to the multi-level marketing community that you represent is extremely important when it comes to expanding or growing the company (which is the ultimate goal with a multi-level marketing company or organization). Todd and Leah Rae suggest a number of different steps you can take to make sure that you don’t lose potential sign-ups who at first seem hesitant or uninterested in the multi-level marketing company or organization that you are representing and trying to get them to become a part of.

Single-Level Marketing

In single-level marketing, the sellers or distributors make profits off of only their own individual sales.


Unlike multi-level marketing, single-level marketing is also a form of direct selling where a person is able to make money through their own personal sales and not from commissions on sales of people within the same company or organization. According to The Balance Careers, multi-level marketing is far more prevalent and popular as a type of direct selling than single-level marketing. In other words, single-level marketing is a kind of compensation plan for sales for companies or organizations and it does not rely on recruiting other members to the same company or business that you are a part of.

Spillover Plan

In multi-level marketing, a spillover plan is when distributors spill into one level from another.


According to Nate Leung, if your company or organization has size constraints per level; for example, you are only allowed to have two people per level, then that automatically means someone has to move so as to adhere by these constraints on how many people one level can have. However, there are some disadvantages to using a spillover plan as it might not be the most conducive option for harboring a sense of community or encouraging teamwork. Nonetheless, this might be a smart option depending on what kind of multi-level marketing company or organization you are trying to build.

Sponsor

In multi-level marketing, the person who recruits individuals to their downline is referred to as the sponsor.


A sponsor is essentially the person who recruited you to the multi-level company or organization in the first place. In a way, it describes the relationship of the person recruited to the person who recruited them. Sponsoring is a necessary part of building or growing a multi-level marketing company. According to Merv Stevens, when you are sponsoring, you have to be passionate about the company or organization you are representing and you also have to connect with these prospective members of your multi-level marketing community. Therefore, being a sponsor is extremely important for a multi-level marketing company or organization.

Stairstep Breakaway plan

The stairstep breakaway plan is a type of multi-level marketing compensation plan where members of the organization keep moving up a step until they breakaway from their sponsor’s group.


According to Network Marketing Made Easy, in a stairstep breakaway plan, as members of a multi-level marketing organization reach certain predetermined or predefined milestones, they move up a step in the organization until they reach a point where they separate or breakaway from their sponsor and their sponsor’s group. Usually, in a stairstep breakaway plan, these milestones are based upon a combination of your personal volume as well as group volume, to decide what each step requires in the plan. In other words, you keep climbing the steps of the ladder of the organization until you breakaway to go it alone!

Stockpiling

Stockpiling is when a member of a multi-level marketing company or organization buys and stores an excess of the products of the company or organization in an effort to meet quotas.


Stockpiling, according to Network Marketing Works, is often the result of an effort to meet monthly quotas that will allow you to remain a part of the multi-level marketing company or organization. This means that often, in order to meet these quotas, you buy more of the product than you are able to or going to be able to sell in a reasonable time period (where the product will last or will be within other similar limitations or constraints). Thus, stockpiling is similar to being garage qualified.

Strong Leg

The strong leg or the reference leg in a multi-level marketing structure refers to the leg in a downline that creates more volume.


According to Street Directory, the stronger leg refers to the leg that you are recruited into which will usually always be longer (which also means you will see more profits from as it continues to grow) as it existed before you joined the company or organization. On the other hand, the shorter or weaker leg is the leg that you start yourself; the leg to which you recruit members. This is generally the case in a binary composition plan, which, as the name suggests, consists of two legs.

Target Marketing

Target marketing essentially refers to the breaking up of a market into different categories based on relevant demographics or other similar data.


According to MBA Skool, target marketing could mean dividing up the market into categories such as age, gender, need or even occupation. This means that you identify certain markets based on their specific characteristics and then cater to them accordingly. In other words, you look for categories or different markets that are relevant to the product or the service that you are offering and target them accordingly with your marketing efforts. Which market you target should be based upon what appeals to that group of people in particular and often target marketing includes more than one category of individuals.

Team

In multi-level marketing, your team refers to the people in your downline or the people you are recruiting as a group.


Multi-level marketing is completely reliant on people being able to create their own teams within the larger structure of the multi-level marketing company or organization. In other words, according to Ray Higdon, your team are the group of people you are responsible for bringing together into a consolidated whole. Furthermore, it is up to you to grow your team as you may not always have mentors or sponsors in your upline who will be willing to help you or support you as you try to grow your team. So it is up to you as to how you want to go about ensuring that your team expands.

Training

Training is the process of learning or being taught everything you need to know to become a part of the multi-level marketing company or organization.


When it comes to multi-level marketing, training forms an essential step to ensuring that you are equipped with everything you need so as to be able to do your job properly. Multi-level training requires your full attention, according to MLM Marketing System, and is often conducted once every week or so. This means that to be able to carry out your job to its fullest potential you will need the guidance of those who have prior experience and training is the best way to gain this knowledge.

Unilevel Plan

A unilevel plan is essentially a plan where an individual can sponsor as many people as they like and all of these distributors will form one level or their frontline.


Kiran Chandrashekhar describes how in a unilevel plan there are no limitations on the number of people you can have in your front line. Individuals or distributors on the same level will earn the same percentage or cut in commissions. However, it is worth noting that unilevel plans can also be seen as being disadvantageous despite it not having many constraints. Therefore, unilevel plans are one of the simplest plans out there when it comes to multi-level marketing companies or organizations.

Unlimited Income

Unlimited income refers to the possibility of earning unlimited amounts of money from a multi-level marketing venture.


When it comes to multi-level marketing, it is often presented as an opportunity for unlimited income. This is because the money or income you earn is entirely dependent on your personal sales and the sales of the person from whom you get a commission, so in that sense, it is unlimited in its scope. However, as Truth in Advertising points out, this can be misleading as it does not necessarily mean that you will make vast amounts of money through multi-level marketing; only that how much money you could make is not a fixed entity.

Upline

The upline refers to all of the individuals who are on a higher level or came before you in the multi-level marketing structure that you are a part of.


The upline, which according to Network Marketing Works, is also referred to as your sponsor, consists of everyone who is directly above you in the multi-level marketing company or organization that you are a part of. This usually includes, but is not necessarily limited to, the people or the individual who recruited you and some members from their team or group. It is an important part of multi-level marketing terminology which comes in handy when describing the specific structure of your company or organization.

Warm Market

Warm market refers to all your prospects who are from your personal circle of family, friends and acquaintances.


When you start out in a multi-level marketing company or organization, your best bet at finding people who might be interested in joining you is usually from your personal circle. According to Network Marketing Works, this includes literally anyone you might know. It is the best way to begin expanding your list of recruits as it is people who trust you and might even share some of the same interests or goals as you do. This makes your warm market a necessary and important asset when it comes to starting a multi-level marketing endeavor.

Weak Leg

The weak leg refers to the is the line or the leg that you start yourself with your own recruits.


When it comes to a binary plan, Street Directory points out that the weak or shorter leg is the leg that you start by yourself with the people that you have recruited (thereby making it shorter than the leg than the one you might have joined). This is also referred to as the weaker leg as it is a work in progress because you are in the process of recruiting people to this leg who will, in time, begin to make money from their sales. Therefore, the shorter or the weaker leg is often used when referring to binary plans.

Wholesale

Wholesale is when you sell a product in large amounts at a usually low price.


According to the Oxford Dictionary, the retailers buy products at wholesale and then resell them for profits. This term is a common and well-known term in marketing that refers to the price of a product at what can be deemed its starting point. It is usually the price of the product before the price is increased by the retailer and then resold. In addition to this, more often than not, when something is bought at its wholesale price it is usually bought in bulk or in large quantities. This is an important marketing term across all kinds of marketing, including multi-level marketing.

Width

Width refers to the number of individuals in a particular frontline.


The width, according to Network Marketing Works, refers to not just the number of individuals in a frontline but can also specifically describe the number of individuals that are permitted to comprise a frontline, depending on whether or not that particular multi-level marketing company or organization has restrictions on how many people it allows in its frontline (this naturally varies from organization to organization). This is yet another term that is used to describe the structure or an aspect of the structure of a multi-level marketing company and is an important part of the terminology for multi-level marketing.

Word of Mouth

Word of mouth refers to a type of marketing where the customers or buyers themselves become marketers of a particular product.


Word of mouth marketing is precisely as the name suggests — people telling other people about a product or service that they have bought or will continue to buy, thereby often encouraging or convincing other people to buy the same product or service on offer. As MBA Skool points out, word-of-mouth marketing tends to save a lot of money for the company or organization when it comes to the promotion of the product. It is particularly effective as the person or individual who is promoting the product is not being incentivized to do so!



In Conclusion

Multi-level marketing is a varied, interesting, effective and dynamic form of direct selling or marketing. It relies heavily on networks and on powers of persuasion but can also be a more direct or effective way to sell a particular product or service than more conventional methods. With this glossary in hand, you now have all the terminology related to multi-level marketing that you need to help you set up your own organization or decide which multi-level marketing organization is the right fit for you!

By Direct Selling Star