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MLM Business Terminologies: A Quick Guide to Understanding the Jargon

by | May 8, 2023 | MLM Software

Binary Plan

A type of MLM plan, where each distributor is allowed to take two front-line distributors.

Level Up Plan

A type of MLM plan, where distributors can increase their income by upgrading their subscription level.

Board Plan

A type of MLM plan, where distributors can earn money by joining multiple boards.

Unilevel Plan

A type of MLM plan, where distributors can earn commission from their own downline.

Matrix Plan

A type of MLM plan, where distributors can earn commission by filling a predefined matrix.

Sponsor

A person who introduces a new distributor to the MLM business.

Direct Distributor

A distributor who is directly sponsored by the sponsor.

Upline

A group of distributors above a certain distributor in the MLM hierarchy.

Downline

A group of distributors below a certain distributor in the MLM hierarchy.

Purchase Volume (PV)

The total amount of purchases made by a distributor or its downline.

Group Volume (GPV)

The total amount of purchases made by all the distributors in the MLM hierarchy.

Matching Bonus

A bonus is rewarded to a distributor for matching the PV/GPV of a certain level in the MLM hierarchy.

Joining Bonus

A bonus is rewarded to a distributor for joining the MLM business.

Spill Over

A bonus is rewarded to a distributor for the PV/GPV generated by its upline.

Weekly Payout

A system of payout where the distributors are rewarded on a weekly basis.

Monthly Bonus

A bonus is rewarded to a distributor at the end of a month.

Referral Commission

A commission is rewarded to a distributor for referring a new distributor to the MLM business.

Level Commission

A commission is rewarded to a distributor for completing a certain level in the MLM hierarchy.

Rank

The position of a distributor in the MLM hierarchy.

Promotion

When a distributor is promoted to a higher rank in the MLM hierarchy.

MLM Growth Platform

MLM Growth Platform is a turnkey web application software that helps you to run your MLM business more effectively. With its configurable compensation engine and administrator controls, MLM Growth Platform gives you the power to manage your business with ease.

MLM Software Demo

Are you ready to see the power of our MLM Software? Take a free demo and see for yourself how our software can help you manage and grow your MLM business. Our product specialist will give you a complete walkthrough of the admin, distributor, and CMS features.

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