Definition of Some Network Marketing Terms (Pt 2)

17. Opportunity Meeting: A recruiting rally or business briefing held by Multi-Level Marketing distributors for the purpose of presenting the opportunity to prospects.

18. Payout: The percentage of a company’s total revenue that it pays out to distributors in the form of commissions and bonuses.

19. Prospect: A potential customer or recruit.

20. Prospecting: The process of seeking customers or recruits for your network marketing/MLM business.

21. Personal Sales Volume: The volume of products that you personally sell in a given month.

22. Personal Volume: The volume of product that you buy at wholesale from the company in a given month.

23. Point Volume: An alternate term for bonus volume.

24. Recruit:  A prospect who has agreed to join your downline as a distributor.

25. Renewal Fee: A yearly membership fee paid to an MLM company in order to maintain your status as a distributor.

26. Sifting & Sorting: The practice of quickly identifying the most promising prospects and focusing your recruiting efforts on them, while ignoring the rest.

27. Sponsor: A distributor in an MLM company who recruits and trains another distributor.

28. Stockpiling: The practice of buying and hoarding more products than you can possibly sell, usually in an attempt to meet excessive monthly quotas to qualify for commissions.

29. Unilevel: A type of compensation plan in which you must qualify for achievement levels, but in which people in your downline cannot break away.

30. Upline: All of the people above you in a network marketing company. Also an alternate term for Sponsor.

31. Warm Market: All potential prospects for your business whom you personally know, either because they are family members, friends or business associates.

32. Width: The number of people in a distributor’s frontline or the number of people allowed in a distributor’s frontline by the rules of the compensation plan.

33. Bonus Volume (BV): An alternate expression for Point Volume (PV) or Business Volume (BV).It is a value used by MLM companies to calculate commissions, based upon the wholesale price of the items for which commissions are being paid.

I sincerely hope this post has demystified some of the misconceptions you previously had about network marketing. See you at thetop!

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