Network Marketing Definitions: 2 – Learn These Common Terms
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Network Marketing Definitions: 2 – Learn These Common Terms

Welcome to network marketing definitions number
2! Today I will be explaining prospecting, prospects,
warm and cold market, compensation plan, generations, max out, front line and infinite depth and
width. Hi, this is Steve from Network Marketing Performance
where you can find ideas to create an extraordinary life through network marketing. So let’s get right down to it and start with
prospecting. Prospecting in the terms of network marketing
is the act of searching for a qualified person to present your business opportunity, product
or service to. And a prospect is a person that is a high
quality lead or a quality potential person to show your business opportunity, product
or service to. So if you’re at a meeting or talking with
a network marketer and they say they talked to prospect or they were prospecting, that
basically means they’re searching or dealing with these qualified people. Warm market is a term used for people in your
closer sphere of influence. These will usually be people you know quite
well, like friends, family or coworkers. And cold market will be people you haven’t
really created a relationship with, like strangers or distant acquaintances. The compensation plan, or some other terms
for it are, pay plan or marketing plan, is the system or structure the network marketing
company uses to pay or compensate their representatives or independent distributors. You will generally see the compensation plan
presented for prospects at business opportunity meetings held by organizations in the company. Another term you will see in a compensation
plan is generations. Generations is a term used to signify where
people are in your group or line of sponsorship. For example, if a person was enrolled in the
compensation structure two places below you, they would count as your second generation. If someone was enrolled under them, they would
count as third generation, and so on. The next one is max out. Max out is when you hit the maximum level
compensation for an area or leg in the compensation plan. It might be where the company can’t pay out
anymore on a leg you have grown, so you would start growing the next leg to continue growing
your compensation. Next is your front line, these are people
that are enrolled directly under you. They would count as your 1st generation in
the compensation plan. Infinite depth and width is a feature a company
places in their compensation plan to encourage representatives to continue to grow their
business. It means the representative will be able to
grow his compensation with no limits on how wide or deep he could build his organization. Well that’s it for today. If you like this video please go ahead and
click the like button and share it with your friends. Make sure to subscribe to our channel to stay
up-to-date with new videos from, us, and be sure to check out
to get some more ideas to create an extraordinary life through network marketing. Thanks for watching, see you next time.

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