MLM Glossary – R

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Recruit:

1. Verb. To enroll or seek to enroll as a member. The difference between recruiting and hiring is that when one hires another it means to engage the services of (a person) for a fee; to employ. In MLM a person recruits another, or a company recruits a person but they are not hired as employees. They are paid a commission for products sold.
2. Noun. A person who has been recruited, or enrolled.

Referrals:

Referral marketing is a method of promoting a product or service, typically through word-of-mouth. This is usually done through informing customers and contacts about the product and encouraging them to spread the word, to talk about the company in a satisfactory manner. Referrals can generate prospects for the business by edifying the upline or downline. Curious or interested markets may seek out the company and the products or services, thus increasing potential volume.

Rep:

Short for representative, rep can mean a sales rep or distributor who can effectively sell the products/services of a particular network marketing company to consumers. It is also someone who can represent the company in a positive way and who possesses a unique persuasion skill that will motivate people to become part of the company as members and retailers. Typically, new MLM businesses hire sales reps or marketing reps as leaders to help them recruit new members and spread what products/services these companies offer. Reps normally have previous experience in marketing or have undergone training before they are sent out to represent a network marketing company, particularly in the initial introduction stage of the business.

Replicated Website:

A replicated website is a website template reproduced for multiple users (in this case, the team members) and tailored for particular business uses. This is typically done to provide the company a strong web presence and generate targeted leads that can help in the growth of the business. The website information and contents (actual layout, logos, welcome page, colors, blog, testimonials, etc.) typically remain unchanged except for the user names and profiles, which are modified according to each distributor’s detailed information.

Residual Income:

See Passive Income

Residual income, or passive income, is income received on a regular basis without exerting much work or effort to earn it. It refers to the income earned in business activities in which you do not materially participate. This is different from a regular pay, or active income, where the paycheck is based on the number of hours of work for a particular period. In network marketing, residual income is generated through building your team and growing your organization.

Retail:

Retail refers to the sale of products or services to consumers for profit. In network marketing, retailing is done by members who obtain goods at a wholesale price and resell them to end users at a certain markup. Distributors, or members, seek out a customer base to sell their products or services to rather than customers coming in to buy. Retailing can also bring in qualified prospects to be part of the team or company. The concept behind MLM retailing is to reach out to consumers and present business and income opportunities on a part-time or full-time basis.

Retention Rate:

In network marketing, retention rate refers to the percentage of people/members who continue to stay with a particular company. Members who leave the company are not considered to be retained members. A high retention rate is a good indicator of a residual income and a profitable MLM business.

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