Downline.com

As in any other kinds of businesses, the MLM marketing business has its own string of terminologies and jargons which a newbie has to be familiar with. Here are some of the common ones:

Upline
Your immediate upline is the one who recruits you into the business organisation. Then you in turn  begin to recruit people as your downline . An upline earns commission from your group volume of sales. Usually your upline is responsible in training and motivating you so that you would be able to succeed in the business. However if your upline is also new like you, then the upline leader or mentor would help in the guidance and training.

Upline Leader/Mentor
An upline leader actively trains and guides his group of dowlines. He needs to train  his downlines in many areas of the business such as the marketing plan, product knowledge or sponsoring techniques. Of course, when a newbie joins an organisation, it is his responsibility to attend meetings to learn from his upline mentor. An upline mentor is there to actively counsel his down lines especially new ones..

Builder
A builder begins his business by recruiting people to form his down lines. He is a distributor of the products or services he intends to deal with. Normally a builder is first convinced of the quality and  viability of the product or service he has confidence in and wants to recommend them to other people. At the same time he builds his   network marketing business with the products or service and recruits other people to join him too.

Depth
Depth refers to the level of your downline’s downline. A person who has built  depth usually would have sponsored many downlines who are actively getting their downlines to join him. Usually he would have reached a certain level where he has a secure organization.

Leg
A leg is a downline group in your network starting from the person you personally sponsored. He and all the downlines under him are considered one of your legs. Depending on the marketing plan of the MLM business,  a  distributor usually trains, motivates and develops many legs simultaneously.

Sponsor
When you join an MLM business, your sponsor is the one who directly introduces you into the business and you are placed  under  him or her.

Downline
The people who join you in your business under you or your downlines   in the organisation are your down lines. They may be many, many levels down your hierarchy and at times you may not even know them personally.

Sideline/Crossline
The people in the sidelines or cross lines are not considered in your organisation and you do not gain financially from their sales.
However, depending on the culture promoted in the company, they are either perceived as the worst competitors, or valuable allies. You have to know that  somewhere along the line, they are also in your upline’s group, so helping your sideline means helping your upline and his group.

Front Line
These are downlines that are personally sponsored by you or are directly under you. You must be directly responsible for their success because you are the one who introduced them to this business. The people in the front lines are very important in your organisation as they would eventually be your downline group leaders as they expand in the number of their own down lines . When they achieve successful levels of performance in the sales plan they would determine the status of  your achievement in the business too. Normally a builder tries his best to push the success of a few front lines and even strategise putting his new downlines in their groups to strength the teams and  increase their total sales volumes. The development of your frontline will determine the success or  failure of an entire downline group.

Width
The number of people you can personally sponsor. Matrixes and Binaries usually limit the maximum width. Normally a strong downline is one that builds and develops a very large width.

Override
An override means you are paid a certain percentage of sales volume over your downline’s  group. Normally an override is calculated on the performance sales volume of  your frontline only.

Profit Sharing Pool
Profit sharing is a bonus that is paid out to high  achievers who have reached certain conditions in the marketing plan. A pool is a collection of sales volume from distributors all over the company regardless of whether the sales volume comes from your sideline.

Maintenance
A mandatory (sometimes optional depending on certain criteria) sales volume a distributor must achieve. This is only fair in the sales plan otherwise it will look as if your down lines work so hard to make money for you. At the same time you are not showing a good example to your downlines  if you do not generate sales volume too. Often maintenance is done to override your downline, become eligible for profit sharing, or maintain a certain rank or even the distributorship.  This is enforced because the company needs to make money as well.

Total Payout
A  percentage of a product sold by the company  is set aside for distributors and retail sales only. The company only keeps the remainder.