Downline / Upline
MLM terminology for the network below a distributor (downline) whose purchases generate commission, and those above them (upline) who earn commission from the distributor's activity.
Also known as: downline, upline, genealogy tree, sponsor line
Last reviewed: 10 June 2026
In a multi-level marketing structure, each distributor occupies a node in a tree hierarchy. Everyone they personally recruit, and everyone those recruits subsequently recruit, forms their downline. The distributor earns a commission percentage on the purchases and sales volume generated by each level of their downline, up to a plan-defined depth.
Conversely, the distributor's upline consists of those who recruited them, and the recruiters above those individuals. The upline earns similar commissions from the distributor's activity and that of the distributor's downline. This creates a layered passive-income incentive structure that makes recruitment more financially valuable than personal sales.
When income from downline recruitment activity substantially exceeds income from retail sales to genuine end consumers, regulators assess whether the company is operating a pyramid scheme. Legitimate MLM requires demonstrable retail sales to non-participating customers as the primary revenue source.