- Binary Plan
- A compensation structure where each distributor can sponsor exactly two direct downlines (a left leg and a right leg), with commission calculated on the weaker leg's sales volume.
- Breakaway
- The point at which a team leader's group, having reached a senior rank, becomes a semi-independent unit - common in Stair Step plans, with the original sponsor still earning an override.
- Carry-Forward Volume
- Unmatched sales volume in a Binary plan's stronger leg that rolls over to the next commission cycle instead of being lost.
- Commission Cap
- A maximum daily, weekly, or per-rank limit on how much a distributor can earn from a specific bonus type, used to manage payout risk.
- Compensation Plan
- The complete set of rules that determine how and when distributors earn money - covering direct commissions, overrides, bonuses, and rank qualification.
- Downline
- The group of distributors that a given member has personally sponsored, plus everyone those people have sponsored, and so on down the tree.
- E-PIN
- An electronic activation code used to register a new distributor or unlock a product package, generated and tracked by the MLM software's admin panel.
- Genealogy Tree
- A visual map of a distributor's entire network - showing placement, depth, and downline performance, usually viewable in real time from the dashboard.
- Generation Plan
- A compensation structure that pays overrides across successive 'generations' of qualified leaders in a distributor's downline, rewarding leadership depth.
- Matching Bonus
- A bonus paid to a sponsor as a percentage of their direct recruits' own earnings, common in Binary plans on top of the core leg-matching commission.
- Matrix Plan
- A compensation structure with a fixed width and depth (for example, 3x9), so a distributor's downline can only grow within that defined shape.
- Monoline Plan
- A single-leg compensation structure where every new distributor is placed into one continuous line in join order, rather than under their personal sponsor.
- Placement
- The position assigned to a new distributor within the network tree - which may or may not be directly under their sponsor, depending on the plan type.
- Rank Qualification
- The sales volume, team size, or active-leg requirements a distributor must meet to advance to (or maintain) a given rank and its associated commission rate.
- Repurchase / Auto-Ship Plan
- A compensation structure that pays commission on distributors' repeat, scheduled product purchases rather than one-time sales alone.
- Smart Contract
- Self-executing code deployed on a blockchain that automates commission distribution in crypto MLM platforms, removing the need for manual payout processing.
- Spillover
- When a sponsor's new recruit is placed under an existing downline member instead of directly under the sponsor, usually because the sponsor's own direct legs are full.
- Sponsor
- The distributor who personally recruited another member into the network - distinct from 'placement', which is where in the tree that member actually sits.
- Stair Step / Breakaway Plan
- A plan that increases a distributor's commission percentage as their sales volume crosses defined thresholds, with senior-rank teams eventually 'breaking away' into semi-independent units.
- Unilevel Plan
- A compensation structure with no limit on frontline width, paying commission overrides across a fixed number of levels deep - typically 5 to 10.
- Upline
- The chain of sponsors above a given distributor, extending up to the company itself.
- Wallet (E-Wallet)
- An in-platform account where a distributor's commissions are credited automatically, from which funds can be transferred, used for repurchases, or withdrawn to a bank account.
