MLM Glossary – L

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Lead:

Lead Generation:

A network marketing term which simply means generating leads or prospects, or potential members of a particular MLM business. Lead generation methods used are diverse and include referrals, advertisements, list purchases, cold calls, telemarketing, search engine results, webpage visits and demographic statistics. The goal of generating leads is to convert prospects into consumers.

Leader:

A leader is a distributor who takes responsibility for those in his downline and ensures they are well trained to sell products to consumers and recruit others. MLM companies typically reward leaders highly because of the value they bring to the company and the people they recruit. A leader in MLM is not based on a resume (as in traditional business), but on production only. Leaders can be found or they can be developed.

Lead Prospecting:

Lead prospecting refers to connecting and building relationships with potential recruits of a particular network marketing business. Lead prospecting is a method of growing the qualified prospect list and getting people interested in the company. The purpose of lead prospecting is to inform people about the product or service being offered and interest them in purchasing the product or becoming a member. Lead prospecting can be done offline at events or conferences, or online on social networking sites such as Facebook, Twitter, LinkedIn, etc.

Level:

In an MLM organization, level means the vertical placement of a distributor or member. New recruits placed under him or her belong to the first level while their recruits will be assigned on his or her second level. New sign ups from the recruits’ recruits will be on the third level, and so on. The more levels an independent distributor has, the bigger the organization, which can bring in increased sales and higher earnings and commissions. Building active levels within a team may guarantee a stable business and passive income over time.

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