Downlines

In networking and multi-level marketing (MLM), a downline is the group of distributors who are sponsored or recruited by a given distributor, as well as the individuals they subsequently recruit. The term is used to describe the chain beneath a person in the hierarchy, with the sponsor at the top and their downline farther beneath. The person who recruited you is called your upline.

Downlines are typically organized into levels or tiers. The compensation in many MLMs includes commissions on direct sales to customers as well as bonuses or overrides on sales made by members in one's downline. Some plans pay on multiple levels with decreasing percentages for deeper levels. Earnings depend on product demand, sales effort, and the ability to recruit; many participants earn little or no net income, while a small percentage of leaders may achieve higher earnings.

Regulatory and ethical considerations: MLMs are subject to consumer protection and anti-pyramid scheme laws in many jurisdictions. Critics argue that some MLMs resemble pyramid schemes when income relies primarily on recruitment rather than product sales. Regulators may require disclosure of typical earnings and prohibit deceptive practices.

Practical aspects: Building and maintaining a downline involves mentoring recruits, training on products, and adherence to company policies. Attrition is common, and success often depends on ongoing recruitment as well as retail performance.