What is Multilevel Marketing (MLM)?
Multilevel Marketing is a strategy that some direct selling companies use to encourage existing distributors to recruit new distributors who are paid a percentage of their recruits' sales. Recruits are the "offspring" of the distributor, and distributors also make money by selling products directly to customers. Key Points to Remember Multilevel marketing is a strategy that some direct-selling companies use as a tool to encourage existing distributors to recruit new distributors. In MLM schemes, there are hundreds or thousands of members worldwide. Still, only some earn significant income from their efforts, indicating a possible pyramid scheme. Although many MLM practices are legal, the FTC has investigated multilevel marketing companies for decades and found many of them engaged in legitimate questionable practices, such as setting up pyramid schemes. Understanding Multilevel Marketing Multilevel marketing i...