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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.

snake oil

‘Snake oil’ is lingo for any product that is sold to solve a problem (or many problems) that it doesn’t. It’s a form of deceptive marketing. Many MLMs sell essential…

roll-up

Some multi-level marketing compensation plans stipulate that if you fail to qualify for commissions in a given month, you are declared inactive. A consultant will not receive commissions from their…

sponsor

The person who enrolls a new distributor or consultant. They are also referred to as ‘upline.’ See also: upline

upline

A series of people ‘above’ a consultant in a multi-level marketing company. The upline includes the person who recruited the consultant, the person who recruited that person, and so on.…

love bombing

Love bombing is a method of influencing people. It usually includes public or private messages of affection, praise, and attention. MLM participants use love bombing to encourage others to to…

downline

Refers to the members a person has recruited and whose sales or referrals also generate income for them as part of a multi-level marketing compensation plan. Can also refer to…

leg

A leg describes person sponsored and includes all those brought in by that person in a distributor network (if they’ve brought in people). If someone sponsors three other people into…

annualized income

An estimated amount of earnings calculated from less than a whole year. Usually income disclosure statements multiply the monthly average by twelve to get the annualized income. In income disclosure…

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…