Dictionary
Dictionary of concepts on network marketing.
AffiliateA person who joins an affiliate marketing company with the intention of selling or referring products. LeverageThe capacity to generate income beyond your individual efforts by supporting your downline network. Genealogy TreeA graphic representation of the network, showing the hierarchical structure within an affiliate marketing company. BinaryA compensation plan that splits affiliates into two branches (left and right). ClosingThe act of confirming that an individual makes a purchase. CompensationThe system through which referrals, commissions and/or bonuses are paid. CommissionA percentage earned by an affiliate for selling or referring products. DownlineIndividuals positioned below an affiliate within the genealogy tree. EventAn in-person or virtual meeting that promotes products, training, motivation, and/or connections. Follow-upContinuous contact with a lead after the initial approach. Residual IncomeIncome that continues to flow after the closing. Passive IncomeIncome generated through the downline network. EnrollmentThe formal process of registering an individual in your downline network as an Affiliate. LeadA potential individual interested in purchasing a product. LeadershipThe ability to influence, guide, and support the downline team toward common goals. MentorshipGuidance or support provided by someone with more experience in the field. NetworkingThe activity of building relationships to expand your network and find potential opportunities. LevelA position in the downline structure, measured by depth. SponsorThe person who invites and helps a new affiliate start in the network. Compensation PlanThe structure that defines how referrals, commissions and/or bonuses are earned in an affiliate marketing company. ProspectingThe action of seeking people interested in the products. RankA position achieved by an affiliate as per the compensation. RecruitingThe act of inviting new individuals to become affiliates. SystemA set of tools, strategies, and steps to increase the selling or referring of products. SupervisorA person responsible for a group within the network. TrainingOngoing education to improve skills. UplineIndividuals positioned above an affiliate within the genealogy tree. VolumeThe total commissions or sales generated by an affiliate or their network.