Sitemap | Home

Network Marketing Dictionary / Network Marketing Glossary / MLM Glossary

**Welcome to The MLM Wiktionary!**

Offered through: MLM The Game, The Ultimate MLM Training Experience! Please edit UNDER THE DOTTED LINE what ever you would like by clicking on “Edit this page”, however, ONLY edit for the greater good. Teach and share good information if you can. If you edit, please note in the pink “Edit Summary” what you did, so we can easily go back to it if someone else does this wrong in the future. No advertising, no HTML, no Images, or Links allowed (Please DON'T try, they will not work), No spam of ANY kind, be nice and enjoy.

We have started this in A-Z order, do your best to squeeze in or make your edits in the proper places. If you find something out of order, be nicer and move it to its right place, thank you, to your ultimate success…

A Advance: An invitation to the next event. Usually more informative, designed to give the prospect an additional exposure to your business opportunity. Auto Ship Program: Is an automatic monthly shipment of products of your choice, for the convenience of both Customers and Distributors. Most companies now offer this so that no product has to be stored in mass quantities. In all reputable companies, you may also cancel at any time. Payments will be made via credit card debit or sometimes via pre-approved check by phone. The advantages of the Auto Ship Program is a higher Member retention rate, and payments to distributors are automatically completed.

B Binary: A type of compensation plan that limits your frontline to two people, and pays out weekly one of the two legs of your organization. (Chapt.19; Wave 4: Network Marketing in the 21st Century, by Richard Poe)

C Cold market: Prospects outside your circle of friends, family, and associates. Commission: In direct sales, mlm, and network marketing distributors earn various percentages of the amount sold by themselves. In multilevel plans and party plans distributors also are rewarded for their teams sales. These deeper level commissions are a smaller percentage than those they earn for the people they personally sponsor. Companies differ greatly in their compensation levels, and compensation plan types. Direct Sales may only be 1 level, some affiliate programs have 2 tiers, and mlm and network marketing companies usually pay 5 levels deep, some pay 10 levels deep, some have bonuses, etc.

D Downline: People recruited by a distributor and all future people recruited through their network(s). Downlines are organized horizontally by legs and vertically by levels Ex: Everyone you personally recruit and everyone who they recruit is your downline. Dream stealer: People who are not only closed minded to your business, but will try and talk you out of being part of it. Unfortunately, dream stealers are often family and friends. Duplicatable: An easy to repeat system. A good MLM company has an easily duplicatable system that all different types of people can apply. Distributor: One who delivers products and or services by means of direct sales from the company to the public. May also be referred to as sales associate, business partner, or representative (reps).

E Edify or Edification: to build up, establish, or strengthen a person or institution, etc.; to uplift. When you introduce a speaker it is vital to edify them to the group in order to build credibility for the information presented. Elevator Speech: A short (no more than 30 seconds) speech designed to give requested information about your company.

F Fast Start Bonus: A financial bonus created for the purpose of getting into action quickly by completing a set of tasks early on in the business. Usually fast start bonuses expire if the distributor does not taken advantage of it early. Frontline: The distributor(s) whom you directly recruit and sponsor, and who are placed on the first level of your organization.


H Heavy Hitter: The term “heavy hitter” is used in the industry to denote individuals who have had major success building sales organizations and selling products. Heavy hitters who have the ability to build quality long-term sales organizations are very much in demand. ( From ) Home based business: A business in which you run from a home office, or anywhere you choose. Home meeting: A meeting in your home consisting of guests from your warm market, where the business opportunity is most likely presented by your upline. Sometimes commonly referred to as a Private Business Reception (PBR).

L Levels: The vertically structured segment of an MLM compensation plan. A person you personally recruit is on your first level. When some one on your first level recruits some one else, that person is on your second level. They recruit some one who is on your third level, and so forth.

M Mentor: A wise and trusted counselor or teacher. A mentor usually has a large involvement in the success of that whom they are teaching. It is crucial to your success in MLM to have a mentor. Mentors may or may not necessarily be your upline. Matrix: A compensation plan that limits the number of people on your frontline, usually to two or three. Multilevel Marketing (MLM): Any marketing program in which participants purchase the right to recruit additional participants, sell products or services, and be compensated for the sales by people they recruit as well as for their own sales. Also referred to as network marketing, direct sales, referral marketing. Matching Bonus:

N Network Marketing: Any marketing program in which participants purchase the right to recruit additional participants, sell products or services, and be compensated for the sales by people they recruit as well as for their own sales. Also referred to as multi-level marketing (MLM), direct sales, referral marketing. O Override Commission: The income one receives as the result of sales by a downline distributor. A legitimate and legal MLM company may only pay override commissions when actual sales of products or services are made.

P Pique (to pique interest): A question to provoke interest in oneнs business. Prospect: A potential customer or recruit. Pyramid scheme or scam: A plan that promises large profits based primarily on recruiting others to join its program and not based on profits from any genuine investment or sale of goods to the public.

Q Qualifying Questions: Specific questions you can ask prospects in order to decide if you want to proceed with the recruiting process. Ex: Are you open to making money outside of what you currently do? Are you interested in owning your own business? R Recruit: 1. A prospect that has agreed to become part of your downline; or if used as a verb, 2. the act of prospecting some one to become a distributor. Residual Income: Getting paid repeatedly for a one time sale. Ex: Acquiring a customer for a phone company that pays you a percentage of their monthly bill.

S Sideline: Distributors in your company that are part of your upline's organization but not part of yours. Sorting: The practice focusing on the most promising prospects and concentrating your recruiting efforts on them, while ignoring the rest. Sponsor: One who recruits another onto their MLM team. Stacking: Stacking is a term used by network marketing companies to describe a distributor's attempt to manipulate compensation in the marketing plan by placing members of his or her household or family in the downline sales structure. It is frowned upon, and most companies have rules that are intended to discourage the practice of stacking. ( From ) Stair Step Breakaway:

T Three-way-call: A prospecting technique used over the phone, which allows distributors to use a third party expert in order to assist them in summarizing the business opportunity. Tap-rooting: Getting referrals from people who do not join your business or try your product(s). Obtaining these referrals as prospects is called tap-rooting.

U Unilevel: A type of compensation plan in which you must qualify for achievement levels, but which people in your downline cannot break away. Upline: Distributors who are above you in the MLM hierarchy.

V W Warm market: Potential prospects you personally know. X Y Z

DSWA - Corporate Member