Achievement Level

• A rank or title that is achieved by moving a certain amount of product per month and / or re­cruiting a certain number of distributors who themselves have attained a certain designated achievement level.

Active

• To earn commissions you must be Active. You become and remain active by purchasing a minimum of XXX PV during a specified time period. For example, purchasing one case of Product X every four weeks will keep you active.

Affiliate Program

• An Internet business, such as Richdad.com, that allows people to become affiliates simply by providing a link on their Web sites to a corporate home page, and pays affiliates a commission on all sales made through that link.

Autoresponder

• A Web site or a service Aweber that e-mails information automatically to anyone who clicks on the responder.

Autoship

• This optional program allows you to establish a standing monthly order with the MLM Company, often it is used to Qualify your Business Center.
  Your product will be delivered to you on a regular basis at the wholesale price.You can put on hold, change, or cancel your AutoShip at any time.

Binary

• A type of compensation plan that limits your frontline to two people and pays out weekly on one of the two legs of your organization.

Breakage

• Sales volume generated by you or your down­line for which you receive no compensation.

Breakaway

• An abbreviation for "stairstep / breakaway," one of the four major types of compensation plan. It can also refer to a distributor in your downline who has met certain minimum monthly qualifications and has consequently "broken away" from your group.

Breakaway Leg

• The organization or downline of a breakaway distributor.

Bonus Pool

• A special fund set aside by a network marketing / mlm company, from its profits, and distributed as a special incentive to qualified sales leaders.

Business Builder

• A distributor who is actively prospecting and gathering customers, as opposed to one who is simply buying product at wholesale for personal use.

Business Center

• Your business center is where you are personally placed within the MLM organization. We may also refer to your business center as a position in the organization.In some case, given certain requirements and restrictions multiple Business centers may be made available to the same IMC.

Business Networking

• Is a marketing method by which business opportunities are created through networks of like-minded business people. There are several prominent business networking organizations that create models of networking activity that, when followed, allow the business person to build new business relationship and generate business opportunities at the same time. 

Buy-Back Policy

• The money-back guarantee offered by all reputable MLM companies to distributors. Generally, companies will pay 70 to 100 percent of the wholesale price on any product that a distributor purchases, but then de­cides to return, for whatever reason.

BV (Bonus Volume)

• An alternate expression for point volume (PV) or business volume (BV). It is a value used by MLM / Network Marketing companies to calculate overrides and commissions, based upon the wholesale price of the items for which over­rides and commissions are being paid.

Circle of Influence

• The people who are closest to you and who constitute your warm market. Also, those who might be easily influenced by you because of your reputation in a particular profession or community.

Cold Market

• Prospects outside your circle of friends, family, and associates.

Commission

• The percentage you earn from the sales volume of your organization.

Commission Checks

• Commission Checks are commissions earned by a distributor.

Commissionable Volume (CV)

• The assigned value of each purchased product on which commissions are paid. It is in the currency of the country in which the order was placed (though the eventual commission check may be issued in yet a different currency). Sales aids usually have no Commissionable Value. Commissionable products have a Commissionable Value which does not have to equal the price paid for the product.

Compensation Plan

• Money received as payment for selling a product to consumers.
• Money received as payment for a downline member selling a product.
• The “compensation plan” is the way a MLM company rewards the production of getting customers and recruiting others who get customers.

Compressed Plan

• A pay plan that stacks or "compresses" the bulk of its commissions on the front end.

Compression

• When a distributor quits or is terminated, his downline moves up one level, thus filling the empty space he left, and "compressing" the company's downline by one level.

Commissionable Value(CV)

• The assigned value of each purchased product on which commissions are paid. It is generally in the currency of the country in which the order was placed (though the eventual commission check may be issued in yet a different currency). Sales aids usually have no Commissionable Value. Commissionable products have a Commissionable Value which does not have to equal the price paid for the product.

Copywriting

• Is the use of words to promote a person, business, opinion or idea. Although the word copy may be applied to any content intended for printing (as in the body of a newspaper article or book), the term copywriter is generally limited to such promotional situations, regardless of media (as advertisements for print, television, radio or other media). The author of newspaper or magazine copy, for example, is generally called a reporter or writer, not a copywriter.

Crossline

• Occurs when a distributor sponsors or attempts to sponsor someone within a company where they're both members into a competing company's business opportunity.

Depth

• The number of levels in your MLM / Network Marketing organization.

Direct Sales/Retails Sales Commission

• Retail sales allow you to earn income by purchasing products at wholesale and then selling them at the retail price. Distributors receive the difference between the wholesale price and the preferred customer price as a retail sales commission.

Direct Selling

• A form of selling whereby independent MLM / Network Marketing representatives, working on commission, sell face-to-face outside of an established retail location.

Distribution

• The process of marketing and supplying goods and services.
• Part of the process of announcing to a consumer the existence of a product or service.

Distrubutor

• A person who contracts independently to sell products or services for an MLM / Network Marketing company. 

Downline

• All the people recruited as distributors into a network marketing / MLM company constitute that company's downline. Your downline consists of everyone whom you re­cruit, who is recruited by your recruits, and so on.

Drop-Shipping

• The practice of shipping product directly to customers from the company warehouse, rather than through an independent distributor.

Duplicatability

• The extent to which an MLM / Network Marketing opportunity can be easily mastered by new recruits.

Duplication

• The process of replicating business builders in your downline.

Dynamic Compression

• In principle this ensures that maximum commissions are paid on every level, usually reserved for the higher levels or ranks.

Enroller

• Is an existing distributor of any rank that first explains the business opportunity to a potential new Independent Marketing Consultant, and subsequently helps them to enroll as an Independent Marketing Consultant. NOTE: The enroller can be anywhere in the IMC's upline, it does not have to be the first person in the IMC's upline. The sponsor and the enroller can be the same person, but this is not necessary.

Ethical

• Being in accordance with the accepted principles of right and wrong that govern the conduct of a profession.
• Morally right or morally acceptable.

Ethical Business

• A business that makes someone’s life better.

Fast Start

• This commission pays out  ____% on number of levels and is earned by Active IMC’s of any rank and is based on the sales volume of the first order made within 30 days by new customers or IMC’s. It is generally paid weekly.

Financial Freedom

• Free from debt and having the means to buy all one desires.

Frontline

• A person you have personally recruited to join your business. There is no one between you and them in the structure.

Generation Bonus

• Sometimes referred to as an in "Infinity Bonus" although it' not infinite. Once you advance in rank (Example) > "Silver", you immediately become a generation. You earn an additional X% on all of the CV in your organization down to, but not including, the next "Silver" or above. This is called the Generation Bonus. As distributors in your organization advance to the rank of Silver, new generations are created. You are paid a Generation Bonus of X % on these Silver generations and perhaps on higher ranks as you advance.

Group Volume

• The total volume of wholesale purchases made by your personal group in a given month.

Heavy Hitter

• A top sales leader in an MLM company.

Home Meeting

• An opportunity meeting held in a distributor's home.

Hotel Meeting

• An opportunity meeting held in a rented hotel conference room.

Infinite Bonus

• A feature that theoretically creates infinite depth in a pay plan.

Infinite Depth

• A feature of some compensation plans allowing distributors to draw earnings from deeper levels, below their ordinary pay range.

Internet Marketing

• Ties together creative and technical aspects of the Internet, including design, development, advertising, and sales. Internet marketing does not simply entail building or promoting a website, nor does it mean placing a banner ad on another website. Effective Internet marketing requires a comprehensive strategy that synergizes a given company's business model and sales goals with its website function and appearance, focusing on its target market through proper choice of advertising type, media, and design.

Investing

• The act of committing money or capital to an endeavor (a business, project, real estate, etc.) with the expectation of obtaining an additional income or profit.

Leader

• A top achiever in an MLM / Network Marketing downline.

Leadership Pools or Bonus Pools

• MLM Companies will often predetermine and set a side a percentage of total sales by rank designation or gross then establish a formula for dividing the Pool amongst Elite Qualified Distributors.

Leg

• A down line within your downline, usually headed by one of your frontline "Leaders" distributors. 

Level

• The vertical position of a distributor in your organization. If you recruit someone, he is enrolled on your first level. His recruits will be on your second level, and the recruits of his recruits on your third level.

Line Of Sponsorship (L.O.S) Enroller

• This refers to those you have personally sponsored, those they have personally sponsored, and so forth.

Lukewarm Market

• Prospects who are neither in your warm market nor your cold market, but somewhere in between. Can refer to people whom you have spoken to once or twice or people referred to you by others in your warm market.

Marketing Plan

• An alternate term for compensation plan or pay plan.

Massive Action

• A sustained, one time barrage of prospecting activity.

Matrix

• A comp plan that limits the number of people on your frontline, usually to two or three.
   

Max Out

• A comp plan is said to be maxed out when you have put enough people in place, moving a sufficiently high level of monthly volume, to qualify you for the maximum level of commissions available in the plan.

Multi-Level Marketing

• A method of distributing a product to a consumer.

MLM/ Multilevel Marketing

• Generally, an alternate term for network marketing. It can also be used to distinguish those particular network marketing plans that permit distributors to draw income from more than one level.

Momentum

• The phase of a network marketing company's growth when sales and recruiting begin to grow at an exponential rate.

Monthly Volume Requirements

• An alternate term for qualifications.

Network Marketing

• A word used in place of the word Multi-Level-Marketing or MLM. Some believe that “network marketing” is different than MLM in that in MLM distributors inventory products to sell to consumers, but in network marketing distributors simply connect consumers with the network marketing company so they (the consumer) can buy direct from the company. Although this may be true in a small number of companies, it’s not being practiced in the industry as a whole - therefore the definition does not fit.

Multi-Affiliate Program

• An affiliate program that allows affiliates to recruit other affiliates and to be paid multilevel commissions on sales of their recruits.

Network Marketing

• Any form of selling that allows independent distributors to recruit other independent distributors and to draw a commission from the sales of those recruits.

Network Marketing Leads

• Leads are people that have indicated an interest in a product, service or business opportunity.

Opportunity

• The chance to join a mlm / network marketing distributorship, or another term for the distributorship itself.

Opportunity Meeting

• A recruiting rally or business briefing held by MLM distributors for the purpose of presenting the opportunity to prospects.

Organization

• When we refer to your organization, we are referring to all distributors in your downline. Other terms used for this are “tree” and “genealogy.”

Organizational Volume

• Monthly sales volume generated by your organization, through product purchases from the company.

Overrides

• The monthly commission you receive from your breakaway legs.

Payout

• The percentage of a company's total revenue that it pays out to distributors, in the form of overrides, commissions, and bonuses.

Pay Plan

• An alternate term for compensation plan.

Pay Range

• All levels of your downline from which your comp plan allows you to draw overrides and commissions.

Pension

• A sum of money paid regularly as a retirement benefit.

Personal Group

• All distributors in your pay range, whom you have personally sponsored, but who have not broken away.

Personal Sales Volume

• The volume of product that you personally sell in a given month.

Personal Volume

• All  Business Volume created by purchases made by the distributor himself/herself.

Point Volume

• An alternate term for bonus volume.

Pre-Launch

• The period just before an MLM / Network Marketing company's official launch.

Prospect

• Someone who is a potential customer.

Prospecting

• The process of seeking customers or recruits for your Network Marketing / MLM business.

Rank

• The title or classification an IMC achieves in accordance with the Compensation Plan, based on his/her PV, GV and downline structure.

Qualified

• You must also be qualified to earn commissions.This often means you must have at least one personally sponsored and active distributor within your Organization, Leg etc. but it varies frpm one MLM Company to another.

Qualifications

• Monthly quotas that distributors are required to meet, in order to qualify for a given achievement level. Quotas are usually set in terms of group and personal volume. Occasionally, there are recruiting quotas, requiring that you bring a certain number of people onto your front­line each month. 

Recruit

• A prospect who has agreed to join your downline as a distributor.

Renewal Fee

• A yearly membership fee paid to an Network Marketing / MLM company, in order to maintain your status as a distributor.

Retail Profit

• The spread between the wholesale price you pay for product, and the retail price at which you sell it to your customers.

Roll-Up

• A feature in some plans stipulating that if you fail to qualify for commissions in a given month, because you did not meet your quota, you are declared inactive, and will receive no commissions from your downline that month.

Saturation

• The theoretical point at which a network marketing / mlm company runs out of potential customers and recruits, and stops growing.

Sideline

• A person who is in the same MLM company but is not connected structurally or within the same line.

Sifting and Sorting

• The practice of quickly identifying the most promising prospects and focusing your recruiting efforts on them, while ignoring the rest.

Sponsor

•  A distributor of any rank who is the immediate upline in an Organization from a new or existing Independent Marketing Consultant, and is generally responsible for the day-to-day coaching, encouragement and assistance of the Independent Marketing Consultants immediately below them.
  NOTE: The sponsor is the first person in the upline of the concerning  IMC.

Stairstep

• An alternate term for an achievement level, or for a stairstep / breakaway compensation plan.

Stairstep / Breakaway

• A type of compensation plan that requires distributors to meet monthly volume quotas, in order to qualify for an ascending series of achievement levels, or "stairsteps." When a distributor reaches a certain level, he "breaks away" from his sponsor's group.

Stockpiling

• The practice of buying and hoarding more product than you can possibly sell, usually in an attempt to meet excessive monthly quotas, to qualify for commissions.

Team

• See Downline

Teleconference

• A recruiting rally or business briefing that is broadcast by telephone. Prospects are told to phone in at a certain time to hear the event.

Three-Way Calls

• A prospecting technique that allows distributors to build a downline while training recruits. When a raw recruit wants to interview a new prospect over the phone, he will 3-way his sponsor into the call. The sponsor gives the presentation while the recruit listens and learns.

Total Group Volume (TGV)

• All Business Volume created downline in the IMC's team to unlimited depth, excluding Personal Volume.

Two-Level Plan

• Another name for the compressed plan, derived from the fact that many compressed plans stack the bulk of their commissions on the first two levels.

Unilevel

• A type of compensation plan in which you must qualify for achievement levels, but in which people in your downline cannot break away.

Upline

• All of the people above you in a network marketing / mlm organization. Also, an alternate term for sponsor.

Volume

• PV is Personal Volume (personal purchases) and GV is Group Volume (purchases in your organization). Volume refers to the points assigned to products. For example, a case of Product X has 100 points of volume. Commissions are earned on based PV/GV points.

Warm List 

• A list of personal contacts drawn up by new recruits that constitutes their warm market.

Warm Market

• All potential prospects for your business whom you personally know, either because they are family members, friends, or business associates.

Width

• The number of people in a distributor's frontline, or the number of people allowed in a distributor's frontline by the rules of the compensation plan.