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Posts published in “Definitions”

Important vocabulary and definitions associated with multi-level marketing, network marketing, social selling, and direct sales companies.

social selling

Social selling is selling something through relationships, parties, or on social media. Social selling is also referred to as social sales, network marketing, Facebook sales, direct sales and more. Some…

ground floor

As part of many opportunity pitches participants will be encouraged to “get in on the ground floor.” This is a term that means to get in early for more upside…

survivorship bias

also: survivor bias Survivorship bias is a type of bias where we focus on the stories of those who were wildly successful. Those stories makes us believe that success is…

up-line

The distributors “above” you in the hierarchy of the company. These participants recruited you or your sponsor (or your sponsor’s sponsor, and so on).

buy-back

Many multi-level marketing programs have a buy-back rule, provision, or program. In these plans, the company agrees to re-purchase product that a distributor wishes to return. Usually there are a…

closed system

A closed system is when sales are within the company participants or to new recruits, rather than the general public. Participants themselves may make most of the purchases. Distributors at…

bonus buying

Bonus buying is purchasing products that a consultant doesn’t need, for themselves or to resell in the short term (30 days or so), in order to maintain or increase their…

inventory loading

Inventory loading is when distributors purchase extra inventory in order to participate in a program, meet personal volume requirements, receive commission checks or other bonuses. Front-end loading is meeting monthly purchase…

opportunity meeting

An opportunity meeting refers to a meeting or party where people give presentations and/or testimonials. These meetings are to convince people to buy the products or to join the company as a…

personal volume

The amount of product or services that a person buys for themselves is called their personal volume. These purchases can be for personal use or for retail. Most compensation plans require…