What is Multi-Level Marketing?
Multi-Level Marketing (MLM) is a business strategy where companies recruit individuals to sell their products or services directly to consumers. These individuals, also known as distributors or independent contractors, are then encouraged to recruit other individuals to join the company as distributors as well. The distinguishing characteristic of MLM is its multi-level structure. Distributors not only earn money through their own sales, but also through the sales made by the distributors they recruit and the distributors recruited by those recruits, forming a hierarchical network of salespeople. In this way, distributors have the potential to earn commissions not only from their own efforts but also from the sales of the entire network. The recruitment aspect of MLM is a crucial component of the business model. Distributors are incentivized to recruit new members by offering them the opportunity to earn from their own sales and the sales of their recruits. This recruitment dynamic ...