Glossary of Direct Selling Terms

Starting with "P"

Whether you are a new social influencer, brand ambassador, or a successful business builder, we're sure you've had a time when you heard a direct selling term you didn't know the meaning of or weren't sure if you were using the word correctly.

Here is a comprehensive glossary of industry terms used in the direct selling, multi-level marking (MLM), influencer marketing, and networking marketing industries to help you sound like an expert from day one.

If you found we missed a term, please let us know here!

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Passive Income

Passive income is the amount earned by doing little to no work. Passive income can have many sources. In an MLM business model, the distributors earn passive income from their recruits in the form of override commission. The recruits must give the upper-ranked member who recruited them.

Personal Volume

Personal volume is the number of sales or revenue generated by a distributor within a specific time. When evaluating the group volume of a particular group in direct selling, an MLM company adds up the personal volume of each distributor in the group.

Probation

Probation is the distributor status that usually comes before the distributor agreement is terminated. Once a distributor moves to inactive status, they will have a defined period of time to become active again and be eligible for commissions before moving to terminated status.

Product

The definition of product is any item manufactured or refined for sale by a person or an entity. The product can be anything, from daily consumables to medicine, or anything that is presented for sale.

Prospect

A prospect is an individual who is fully qualified to fit specific criteria and fits your target market perfectly. Unlike an unqualified and unidentified lead, a prospect is authorized to make buying decisions and is a potential consumer.