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downline

Downline refers to the network of participants who are linked to a given participant through recruitment in a multi-level marketing (MLM) or referral program. The person who recruits is called the upline; the recruited individuals comprise the first-generation downline, and the people they recruit form second-generation downline, and so on. The arrangement often forms a hierarchical or tree-like structure that spans multiple generations.

Downline management is central to MLM compensation plans. Members earn commissions, bonuses, or overrides based on

Common plan types include unilevel, binary, and matrix. In a unilevel plan, each member can sponsor an

Critics point to sustainability concerns and potential pyramid-like incentives, and many jurisdictions regulate MLMs to distinguish

In practice, a downline may include both distributors and customers.

the
sales
and
activity
of
people
in
their
downline.
The
size
and
depth
of
a
downline,
as
well
as
group
sales
volume,
determine
earnings
in
many
plans.
unlimited
number
of
direct
downlines,
while
in
a
binary
plan,
downlines
are
placed
in
two
legs;
matrix
plans
restrict
the
number
of
positions
per
generation.
Concepts
such
as
spillover
(downline
members
placed
under
an
upline
by
precedence)
and
leg
performance
are
relevant
to
some
designs.
lawful
marketing
from
pyramid
schemes.
Compliance
and
disclosure
requirements
vary
by
country.