Introduction
Down lines, up lines, overrides and spill over. Understand? Of course not! But it was exactly these types of terms that I was bombarded with when I was at first trying to learn about the world of multi level marketing. It made it a slow process to say the least, so I thought that I would write an article to help the folks out there that are about to undertake the same journey.
The way that a multilevel marketing company pays the person who invests in it and sells the products or services that it provides is through a "compensation plan," and there are a great many types of them that are employed.
Matrices
The first one we will look at is the one that revolves around the idea of matrices.
"Matrices" is the plural form of the word matrix. In the context of multilevel marketing everyone below you in the matrix you have entered ends up giving you a portion of the income they generate in the company. This turns into a commission paid by the company that you have invested in. Alternatively you are in the matrix of the person who recruited you.
The people you recruit into your matrix are referred to as your down line. The people who they also recruit are also in your down line. The people in your down line are the ones who are responsible for the amount of income that you will receive and if you can recruit good sales people into the down line of your matrix you will have a good residual income.
Alternatively people who are above you in the matrix of the MLM that you have chosen are referred to as being in your up line with money going from you and your down line up to them.
Sideline Compression
Another term that is often used is sideline compression. Sideline compression is what happens when a member does not have enough sales. They are then moved down line and a person with better sales is moved up line to take his place. Making sure this does not happen to you is important to say the least, and a small amount of training can go a long way when you are starting a business for the first time. The MLM you join will provide this for you when you sign up if it has any interest in staying in business.
Spill over
There are many other things that the world of MLM that you should be made aware of and one of those things is called spill over. Spill over is the term used to describe what happens when the first line of your matrix is filled up and you need to put the new recruit into your down line. The new recruit can be placed into the frontline members down lines. This can be a big help to the new members having even newer members placed in their down line from their up line. You may think that you are losing money if they are placed further down in your down line but the faster the levels of your matrix are filled the sooner you will get paid and the person is still in your down line anyway.
Cycles
"Cycles" is a term used in the context of when a level of the down line is filled and the quota is filled, payment is made by the top level of the up line and a cycle is completed.
Expandable depth commissions
Expandable depth commissions are a way to describe the types of compensation plans that are able to sustain an either infinite or, as the name would suggest, "expandable" number of people in the down line. Some are mathematically limited and cannot support high numbers.
Overrides
The term overrides is used simply to describe the amount applied to the sales volume from the sale of the product.
Copyright 2004 Android Technologies, Inc.
About The Author
Ted Riley is an entrepreneur and educator interested in teaching others on the benefits and rewards of having your own home business. He writes frequently for the web site "A Grandmother's Business", a web site dedicated to the needs and equirements of the mature woman entrepreneur and job-seeker. To see more articles like this visit: http://www.grandmabiz.com/
![]() Google News Updated : Tue, 07 Oct 2008 02:49:07 GMT Injury forces May-Treanor to sit out this 'Dancing' - USA Today
USA Today - By Bill Keveney, USA TODAY Two-time Olympic gold medalist Misty May-Treanor may be sidelined from ABC's Dancing With the Stars, but she says she won't let a leg injury suffered during rehearsals stop her from competing in beach volleyball. Misty May-Treanor drops out of ‘Dancing’ May-Treanor vows torn achilles won't end her volleyball career ... Publ.Date : Tue, 07 Oct 2008 02:09:39 GMT Rays roll over White Sox, punch ticket to ALCS - Sports Network
Sports Network - Chicago, IL (Sports Network) - BJ Upton hit two solo homers, and the Tampa Bay Rays defeated the Chicago White Sox, 6-2, to clinch their first berth in an American League Championship Series in franchise history. White Sox eliminated from post-season with Game 4 loss to Rays Rays Finish Off White Sox to Reach ALCS Publ.Date : Tue, 07 Oct 2008 02:14:13 GMT Computer Chip to Monitor Teen Drivers - ABC News
ABC News - By LISA STARK, MATT HOSFORD and KATE BARRETT Car keys -- long perceived as the keys to teenagers' freedom -- may soon be the best way for parents to monitor their every move. Going Along on the Ride With Junior Ford: Key limits speed, stereo volume Publ.Date : Tue, 07 Oct 2008 01:16:34 GMT Three Europeans win the 2008 Nobel for medicine - International Herald Tribune
International Herald Tribune - By Lawrence K. Altman The Nobel Prize in Medicine was awarded Monday to three European scientists who discovered viruses behind two devastating illnesses, AIDS and cervical cancer. Aids and cervical cancer pioneers share Nobel award Nobel Prize to HPV Researcher Highlights Importance of Cervical ... Publ.Date : Tue, 07 Oct 2008 01:50:01 GMT China's Reputation On Product Safety Reaches a New Low - Washington Post
Washington Post - By Blaine Harden Even Burma -- where one of the world's most repressive and isolated military governments relies on trade with China -- has now warned its people to steer clear of all Chinese dairy products. Video: No Traces of Melamine in New Test of Milk Powder China vows overhaul of 'chaotic' milk industry Publ.Date : Tue, 07 Oct 2008 01:55:33 GMT As Palin Brings Up Ayers, Obama Team Cites Keating - Washington Post
Washington Post - By Anne E. Kornblut and Michael Abramowitz The presidential campaign of Sen. Barack Obama for the first time criticized Sen. John McCain for his role in the "Keating Five" savings-and-loan scandal yesterday, saying the issue was fair game after a ... Video: AP Campaign Minute McCain ready for combat in 2nd presidential debate Publ.Date : Tue, 07 Oct 2008 02:17:08 GMT Plaxico Burress takes Giants to school with tired act - New York Daily News
New York Daily News - Plaxico Burress with his son after the Giants win Super Bowl 42. Burress will need to get his act together if the Giants are to repeat as champs. Burress Returns to Giants, With No Regrets Unapologetic Plaxico Burress returns to Giants Publ.Date : Tue, 07 Oct 2008 02:10:29 GMT Website Traffic Promotion |
PARLOT::Ebooks, Scripts,
Websites, and more... The American Dream. Quitting your 9-to-5 job to start your... Read More "Finding these three letters: W. H. Y. will guarantee you... Read More Have you ever gone to a networking event and talked... Read More A network marketing Internet business is what millions of ordinary... Read More Did you know you can get free newspaper and television... Read More The MLM tools to grow your MLM home business can... Read More Terms such as Network Marketing, 'MLM', and Multi Level Marketing... Read More Not too many years ago we found mlm leads the... Read More The multi-level marketing independent distributor continually faces the challenge of... Read More If you've never had the experience you're very lucky....You just... Read More Homebased Network Marketing Mlm has three qualities: control of time... Read More For years, industry experts have been predicting that video was... Read More Just whisper the words "network marketing" and you're bound to... Read More Back in the early days of developing my home based... Read More Recent discussions with fellow network marketers have centered on whether... Read More Are you also curious, but skeptical, about becoming financially free... Read More You can buy MLM leads from a variety of sources... Read More You're in consistent and persistent massive prospecting action. You are... Read More Network marking is the ordinary person's best opportunity to make... Read More The information containing details of the sale, provided by the... Read More Ever since the introduction of money making programs became available.... Read More In multi-level marketing (MLM), or network marketing, the MLM business... Read More Network marketing has a fantastic range of business opportunities. First... Read More Bookmark this page and refer back to it! Send it... Read More Network marketing or sometimes known as Multi Level Marketing (MLM)... Read More
Adsense
websites
Tips to Setting Boundaries: Making Your Office Your Own
Finding Your WHY!
Developing Relationships at a Networking Event
Network Marketing Internet Business Basics
How To Get Free Publicity For Your Home Business
MLM Tools To Generate Repeat Business
Understanding The Power Of Network Marketing
Finding MLM Leads Thru Creativity
Multi-Level Marketing with Email Leads
How To Find Your Perfect MLM Sponsor In 3 Easy Steps - Without Going Completely Insane
Homebased Network Marketing Mlm
The Launch of the Next Wave in Affiliate Programs, Network Marketing, MLM, Direct Sales and Internet
What 15 Years in the Network Marketing Industry Taught Me
Quality Beats Quantity Every Time
Network Marketing Secret: Go Sheep Shopping, You Get Sheep
Financially Free with Network Marketing?
Buy MLM Leads With A Bit Of Caution
Create a Personal Development Structure to Support Your Network Marketing Success
Network Marketing Tips
Importance Of Leads
The Lurking Affiliate and MLM Junkies
Opt-in MLM Leads: An Overview
Tips for Success in Network Marketing
MLM Network Marketing Success Training- The BLAZING Top 52 MLM Recruiting Tips- Part 1
Network Marketing, Multi Million Dollar Business or Just a Spam?
By helping others to grow their business you ensure growth... Read More
The purpose of this guide is to provide a step-by-step... Read More
There are those in the Network Marketing industry who would... Read More
Many people get started in network marketing because they see... Read More
Lately, I have been happily attracting leads for my Internet... Read More
Multi-level marketing (MLM) is a type of direct marketing that... Read More
Here is truly a MILLION Dollar Question:What is a Basic?It... Read More
When a person knows and knows not that he knows.... Read More
Terms such as Network Marketing, 'MLM', and Multi Level Marketing... Read More
Recruiting on the Internet in MLM is very popular! Yet,... Read More
The MLM REALITY Check.It's all what's inside you that counts.No... Read More
It's really strange! Too many people start an MLM business... Read More
That can be two words that transform your life forever,... Read More
Many people don't know the difference between MLM and pyramid,... Read More
Maybe it is the stigma attached to it, that all... Read More
When I build my internet mlm business, many of my... Read More
It is amazing.Every where I have the honor of speaking,... Read More
How or why some people excell at Network Marketing, while... Read More
Let me tell you this... if you always jump from... Read More
Hi! My name is Janice Byer and I am the... Read More
Whether you want to be your own boss or you... Read More
Hi All,This could be the most important email you'l ever... Read More
Here are the next 26 tips of the BLAZING Top... Read More
The American Dream. Quitting your 9-to-5 job to start your... Read More
Every MLM or network marketing operation offers the same promises... Read More
Network Marketing |