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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.

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…

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…

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…