MLM, Affiliate and Direct Sales Glossary

Multi-level marketing (MLM)

A model in which distributors sell and recruit others, earning on their own sales and on their network.

Binary network

A two-leg structure, with bonuses based on the balance between them.

Unilevel network

Unlimited width on the first level, configurable depth.

Forced matrix

Fixed width and depth (e.g., 3×9).

Dynamic compression

A recalculation that "closes the gaps" left by inactive members to preserve commissions.

Career plan / qualification

Ranks the distributor achieves as they hit targets.

Residual bonus

Recurring commission on the network's ongoing consumption.

Member-get-member (MGM)

A referral program: customers bring customers and get rewarded.

Affiliate program

Commission for whoever generates a sale through a referral, with a trackable link.

Benefits club

A subscription with recurring perks, focused on retention.

Cashback

A percentage of the purchase returned to the customer.

Direct selling / D2C

Selling straight to the consumer, with no middleman or marketplace.

Industry glossary