A brief glossary of MLM terms
Here are a few terms that you’ll no doubt come across during your research (although some are specific to certain MLM opportunities):
Compensation Plan
The system by which the MLM company remunerates
Crossline
Someone who is in one of your Upline’s groups, but who is not in the same Line as you are
Distribution
The marketing of products and services
Distributor
A person who has signed with a MLM company. Also known as an IBO, Associate or Representative
Downline
Someone you have personally recruited or who has been recruited by someone in your Organisation
Financial Freedom
Having full control of your finances, and no debt
Frontline
A distributor that you have personally recruited to join your Organization
IBO
Acronym for Independent Business Owner
Leader
Someone who recruits and trains a lot of distributors and takes responsibility for his Downlines
Leg
The group falling below each of your Frontlines
Line
The group of people who fall under your Organization and those directly above you and your Sponsor
Organisation
The people making up your downline; also knows as your Group
Prospect
A potential customer or distributor
Recruit
To Sponsor or enroll a prospect as a member of your Group.
Sponsor
The act of enrolling a distributor and the person who enrolled you into the business
The Plan
The concept and workings of the MLM opportunity, and presentation of it to new prospects
Upline
Anyone above you in your direct Line (your Sponsor; your sponsor’s sponsor; and so on)
