Question
What is a downline?
Short answer: A downline is the group of participants connected beneath someone in a multi-level compensation structure.
Why this matters
Some compensation plans pay participants based on activity by people in their network.
Before joining, understand whether compensation depends on customer sales, participant purchases, recruiting, rank, or volume.
Questions to ask before joining
- How much compensation comes from my own retail sales versus team activity?
- What must my downline do for me to qualify?
- What happens if people stop buying or leave?
Related recruiting phrases
Helpful next pages
Sources
- Multi-level Marketing Businesses and Pyramid Schemes, Federal Trade Commission . Accessed 2026-06-14. Support type: Regulator guidance.
- Business Guidance Concerning Multi-Level Marketing, Federal Trade Commission , 2024 . Accessed 2026-06-14. Support type: Regulator guidance.