Glossary
Compression
Compression is a rule that skips over an inactive distributor when calculating commissions, moving the volume and placement of the people below that inactive distributor up to the next active distributor in the line. Companies apply compression so that an upline distributor is not blocked by someone who has stopped ordering or paying dues.
Also called: dynamic compression, unilevel compression
Why it matters
Without compression, one inactive distributor in a line could cut off commissions to everyone below them, even if those people are active and selling. Compression protects active distributors' earnings but can also mean a distributor's effective placement shifts if the person above them goes inactive.
Example
If a distributor's direct upline stops qualifying for two straight periods, the plan's compression rule moves that distributor up to report directly under their upline's upline for commission purposes.