The definitions of “upline” and “downline” can be rather simple to explain even though compensation plan structures are rather complex. Here we have provided a brief and simple explanation of uplines and downlines.
Multi-level marketing, otherwise known as network marketing, MLM, party plan, and/or direct selling, is a business in which a sales force sells products and services through word-of-mouth marketing. The sales force (also known as consultants, representatives, distributors, etc.) is compensated not only by the sale of products and services to customers, but also for the sales made other sales people whom they recruit. As a consultant recruits other consultants, they generally earn a percentage of their recruits’ sales. These recruits are called the “downline” distributors.
Conversely, if you are recruited into a MLM company then you will have a sponsor. Your sponsor – along with other consultants in levels above you – is considered your “upline.” Your upline will receive a percentage of your sales. This will entice them to recruit more consultants.
Visit MLMLegal.com and MLMAttorney.com for much more information about the direct selling industry.
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