Most modern direct selling plans offer enroller coding bonuses. Historically, a sponsor enrolled a new distributor frontline and was deemed the sponsor. Commissions flowed from this relationship.
However, as sponsors became busier and busier, companies concluded that it was beneficial to all parties to allow a sponsor to place a newly-sponsored distributor into the downline, but not necessarily frontline to the sponsor.
This approach allowed top distributors to recruit, but assign the new distributors to downlines that would be better able to work with the new recruit. In addition, this approach allowed a top distributor to reward individuals in their sales organization with some of the benefits of top distributor’s recruitment efforts.
And thus the concept of an enroller developed. In this case, an enroller is a sponsor that places a downline distributor into the downline, but not frontline. The sponsored individual is placed underneath a “sponsor” and is tied and coded to an enroller or “code sponsor,” with the enroller or “code sponsor” receiving a specific “coding bonus” which is associated with sales volume of an enrollee or “coded sponsoree.” This “bifurcation” of commissions allows for a reward to the efforts of both the “enroller” and the support efforts of the downline distributor who becomes a sponsor.
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