MLM Glossary – W

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Warm Market:

A Warm Market is defined as a potential customer base that can readily agree to a sales pitch, typically a base that has previous knowledge of the business or product. Examples of a warm market include the family and friends of a business person, co-workers, acquaintances, etc. Typically, the goal of a network marketing business is to utilize the warm market and develop the cold ones into becoming warm. Sales strategies for network marketing businesses can change depending on the warmth of the market.

Weak Leg:

In a binary MLM pay plan, a distributor has two legs – left and right, or commonly known as strong and weak leg. The weak leg is called “weak” because it is shorter, or has lesser members than the strong one. However, in a compensation plan such as the binary, a particular distributor has to keep both legs balanced to qualify for a paycheck.

Where the legs are unbalanced, a distributor is paid based on the production of the weak leg, thus the term “money leg” for the shorter (or lesser business volume) leg. Network marketing experts suggest beginners focus on building the money leg rather than the strong leg. Typically, the sponsors and the people above you take charge of the power leg while you, as the member, concentrate on working on your weak leg to balance both sides.

Wholesale:

A term used to describe the products or services of a particular MLM business. The product or service is typically bought in large quantities at low costs to be retailed for profit. In the distributors/members at wholesale price, and members can in turn sell the products or services for a recommended markup, or profit. Acquiring the merchandise at wholesale price is one way for MLM members to earn profits, aside from the commissions acquired from the sales of downlines.

Word-of-Mouth:

Word-of-Mouth refers to the sharing of information from one person to another through verbal communication. In the network marketing industry, it is also called word-of-mouth marketing, where the products or services of a particular MLM business are sold by the members directly to consumers via referrals, and subsequently passed on verbally until it becomes a household product name. Word-of-mouth is generally considered an inexpensive way to advertise and promote a particular network marketing business as a whole.

Work From Home:

This term refers to income-earning endeavors that people can do working from their own homes. Many Network marketing companies are work from home business ventures.

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