- A lot of novice and non-networkers are starting to read this column according to my post bag. (I wonder if winning that award had anything to do with it?) Many of you would like a jargon-busting article to clarify some of the terms we use in network marketing (NWM). So the first term we really need to understand is:
As a noun (my sponsor) it is the person who introduced you to the business. As a verb (I sponsored Fred) it also means to introduce someone into your networking business.
COMP OR MARKETING PLAN
The compensation, marketing or pay plan. This is the payment structure used by the company to allocate commissions and bonuses to their distributors. It’s important to understand it as quickly as you can. Understanding equals more income! Some networkers have been known to say things like “Don’t worry about the plan it’s complicated - just get on with the business and you’ll earn the money” RUBBISH! You wouldn’t take a job without asking about the salary and finding out when it was paid would you? A really good question to ask here is “What is the potential maximum payout? And what was the actual payout percentage last year” The higher the second figure is - the more it is possible for you to earn. With most companies the percentage that can be paid out to someone at the top position on their plan is around 40-60% (that is of the wholesale product value) The actual percentage paid out overall is often less than half that! Partly because few people bother to understand the plan and so never benefit from it properly and partly for less obvious reasons which I’ll cover sometime when I’m feeling brave!
UPLINE
This is your sponsor and the people above them, that sponsored them. In most companies you’ll have at least 3 ‘upline’ business advisors. Any of them will help you. Some of them may be more successful than others and, just on a personality level, you may get on with some better than others. It doesn’t matter which ones you work with. This is networking not conventional business. You’re not going over your sponsor’s head - you’re expected to work with more than one of your upline. In conventional business you have advisors; accountant, solicitor, bank manager - in networking you have all those too, but also at least 3 people who specialise in the networking business. They have already succeeded and they can help you to do the same. If for any reason they aren’t helping you - complain to the company - they are earning money on your efforts - you are entitled to their help. They’re not psychic though so you need to contact them regularly and tell them what you need from them.
DOWNLINE
The people you’ve introduced into your business, their people and so on. It’s a collective noun, like a gaggle of geese or a pride of lions you have a downline of distributors.
LEG or LINE
All the distributors downline of one of your frontline or first level personally sponsored distributors. A section of your business in other words.
LEVEL
The people you sponsor will be on your first level - the people they sponsor will be on your second level and so on. This should not be confused with a generation which is used to calculate the higher levels of bonus.
B.O.M. or MEETING
A Business Opportunity Meeting, goodness they were dreadful! The way that many people used to recruit for their downlines. If you’ve ever been dragged along to one of these boring events - take heart. Times have changed and many companies have now abandoned them. They’ve been replaced with modern tools like videos, audios, fax on demand, auto-responders on the internet, telephone conference calls and internet presentations. All of which can be viewed or listened to at a time that suits you from home -Far more civilized!
STARTER PACK
A kit of information and often some products that you can purchase from a company to start your business properly. Don’t even think of trying to do without it - you’ll fail.
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