Network Marketing Journey

Are you confused by some or all of the lingo and buzz words used in the Network Marketing Community? I was when I first started and to help ease the pain of the learning curve I have begun compiling a list of terms for you to peruse.

If you don’t find what you are looking for here, contact me and let me know I have missed something. I would be more than happy to answer your question AND add the missing terms and definitions to the list.

(A - H) | (I - P) | (Q - Z)

Achievement Level: A rank or title given by moving a set amount of product per month and/or recruiting a certain number of distributors/representatives who have also reached a determined level of success.

Affiliate Program: An Internet Business, giving people the right to promote products by providing a link tailored to them, often to a Corporate website. When sales are generated commissions are paid to the individual or ‘affiliate’.

Autoresponder: A service such as getresponse or aweber, emails information to users who have opted to receive a newsletter OR report. Most often this is accomplished by entering their name and email address.

Binary: A type of compensation plan which limits the first level of your downline to just two people.

Breakaway: This is one of the four major types of compensation plans. Sometimes, a distributor who in your downline who has met cetain qualifications and has in a sense broken away from the team.

Bonus Pool: A special fund put aside by the network marketing company, from their profits and is distributed as incentive to sales leaders who qualify.

Bonus Volume (BV): Bonus volume, sometimes referred to as point volume (PV), is used by network marketing companies to calculate overrides and commissions based on the wholesale price of the products sold.

Business Builder: A distributor/representative who is actively promoting their business and gathering customers rather than the person who is purchasing products for personal consumption.

Buy-Back Policy: A money back guarantee stated by all network marketing companies for the distributors. The amount paid back to the representative varies from company to company but is usually in the range of 70 to 100 percent of the wholesale price.

Circle of Influence: More commonly referred to as your warm market, a circle of influence is the group of people closest to you. People who you have developed a relationship with and may be easily influenced by your opinions and recommendations. Examples of your circle would by family, friends and existing business associates.

Cold Market: Anyone outside your circle of friends, family and business associates.

Commission: The percent of $$ you earn for the sales volume generated.

Compressed Plan: A compensation plan which stacks or ‘compresses’ the bulk of its commissions on the front end.

Compression: When a distributor/representative quits or is terminated, his downline moves up one level and fills the space left behind. In this way it is often said that the downline ‘compresses’ upward by one level.

Depth: The number of levels in your network marketing organization or downline.

Direct Selling: A commission based form of selling. Representatives of network marketing companies who sell face to face outside of an established retail location.

Distributor: A person who contracts ( or joins) with a network marketing company to sell products and/or services.

Downline: The sum total of all distributors in a company is their downline. A distributor’s downline is the number of people who you have recruited, the people they recruited and so on right down the line. Alternatively, I’ve also heard of the downline being called the ’success line’ to embody the given representatives success.

Dropshipping: The practice of shipping product directly from the company warehouse instead rather than being shipped to the distributor.

Duplication: The process of replicating previous successes in your own downline.

Group Volume: The amount of sales generated by your group in any given month.

Home Meeting: An opportunity meeting held in the distributor’s home. Depending on the company and industry you might also hear it referred to as a home party or travel party.

Hotel Meeting: A meeting held in a hotel conference room.

(A - H) | (I - P) | (Q - Z)

If you enjoyed this post, make sure you subscribe to my RSS feed!