Glossary of MLM – Software

A

  • Affiliate: A person who earns commissions by referring others to join the MLM network or purchase products.
  • API (Application Programming Interface): A set of tools and protocols that enable integration of MLM software with other applications like payment gateways or CRMs.
  • Autoship: A recurring order system used in MLM businesses to ensure regular product deliveries and commission payouts.

B

  • Back Office: The administrative portal of MLM software where distributors manage their accounts, track sales, and monitor team performance.
  • Binary Plan: An MLM compensation structure where each distributor recruits two downline members, creating two “legs.”
  • Business Volume (BV): The total sales volume generated by a distributor and their downline, used for calculating commissions.

C

  • Commission: The earnings a distributor receives for their sales and the sales of their downline.
  • Compensation Plan: The structure that defines how distributors are rewarded for their sales and recruitment efforts (e.g., binary, unilevel, matrix).
  • CRM (Customer Relationship Management): A system integrated with MLM software to manage customer and distributor relationships effectively.

D

  • Dashboard: A visual interface in MLM software displaying key metrics like earnings, sales, and team performance.
  • Direct Selling: Selling products directly to consumers without intermediaries.
  • Downline: The group of distributors recruited by a distributor and their subsequent recruits.

E

  • E-Wallet: A digital wallet within MLM software where commissions and earnings are stored for easy payouts.
  • Encryption: A security measure in MLM software to protect sensitive data, such as financial transactions and personal details.
  • Enrollment: The process of joining an MLM business as a distributor.

F

  • Forced Matrix Plan: A compensation structure where the number of recruits per distributor is capped at a specific limit.
  • Fast Start Bonus: A one-time reward given to new distributors for achieving early milestones or recruiting members.

G

  • Genealogy Tree: A hierarchical diagram in MLM software showing the structure of a distributor’s downline network.
  • Global Pool Bonus: A percentage of company revenue shared among top-performing distributors.

H

  • Hybrid Plan: A combination of two or more MLM compensation plans, designed to maximize earnings and flexibility.

I

  • Integration: The process of connecting MLM software with other systems like payment gateways, CRMs, or inventory management tools.
  • Incentives: Rewards such as bonuses, trips, or gifts offered to distributors for achieving specific goals.

L

  • Leg: A branch in a distributor’s downline in binary or matrix plans.
  • Lead Management: A feature in MLM software that helps distributors track and nurture potential recruits or customers.

M

  • Matrix Plan: A structured MLM plan where each distributor can recruit a fixed number of members in their downline.
  • Member Management: A module in MLM software used to manage distributor profiles, ranks, and performance.
  • Mobile App: A smartphone application for MLM software, enabling distributors to manage their accounts on the go.

N

  • Network Marketing: Another term for MLM, emphasizing the importance of building networks to sell products and recruit members.
  • Notification System: Alerts and updates within MLM software to inform distributors about transactions, commissions, and announcements.

P

  • Payment Gateway: A system integrated with MLM software to process payments securely.
  • Payout: The process of distributing commissions to distributors.
  • Placement: The positioning of new recruits in a distributor’s downline.

R

  • Referral Link: A unique link provided to distributors for recruiting new members or customers.
  • Replicated Website: A personalized website for each distributor to promote products and recruit new members.
  • Retail Profit: The earnings a distributor receives from selling products directly to customers.

S

  • Security: Measures like encryption and two-factor authentication used in MLM software to protect data and transactions.
  • Sponsor: The distributor who recruits a new member into the MLM network.
  • Subscription Plan: A recurring payment model used in MLM businesses to ensure distributors maintain their active status.

T

  • Team Volume (TV): The combined sales volume of a distributor’s downline, used for ranking and commission calculations.
  • Tiered Commission: A structure where distributors earn commissions based on their rank or the level of their downline.
  • Tracking: Monitoring distributor activity, sales, and performance through MLM software.

U

  • Unilevel Plan: An MLM plan where distributors can recruit unlimited members directly under them, creating a single-level downline.
  • Upline: The distributors who are higher in the network hierarchy relative to a specific distributor.

V

  • Virtual Office: The online portal of MLM software where distributors manage their accounts, track progress, and communicate with their network.

W

  • Wallet Transfer: The ability to transfer funds between e-wallets within the MLM network.
  • Web-Based Software: MLM software hosted online, accessible through a browser.
  • Withdrawal: The process of transferring earnings from the e-wallet to a bank account.