Direct selling is one of the best business models that enables entrepreneurs to attract more customers and build a strong network. An important part of the direct sales business success is their distributors. With a genealogy tree, the direct sales organization can have a clear picture about their distributors. In a genealogy tree, the distributors are placed as uplines and downlines.
What is an upline and downline?
The person who brings in a new distributor into a direct sales organization is referred to as an upline. The new distributor will be placed under this person, and the sponsor can receive commission for the sales the new distributor makes. The distributor who is placed under an existing distributor is referred to as a downline. the downlines are placed based on the compensation plan the company chooses.
For a binary compensation plan, a sponsor can place two distributors under them. Even though the binary level is unlimited, two distributors per distributor is a strict rule. These distributors are placed as two legs of the sponsor distributor . One is weak leg and the other is pay leg. Compensations are provided based o the pay leg. a sponsor can motivate their distributors to improve their productivity and generate ore sales.
For a unilevel compensation plan, the sponsor distributor can place unlimited distributors in a single level. These downline distributors can also place distributors as their downline.
In a breakaway compensation plan, the distributors can break away from the corresponding line and create their owl line once they have achieved personal and group sales volume.
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