Multi-Level Marketing Business Model
Multilevel marketing (MLM) is a sales approach that uses a non-salaried workforce to sell products and services through a pyramid-shaped commission scheme. MLM is frequently referred to as network marketing. Companies that use multilevel marketing urge existing distributors to recruit new distributors referred to as the existing distributors' ‘downline.’ Multilevel marketing is sometimes mistaken for a pyramid scam, however, the latter is banned. Pyramid schemes "ask people to make an investment in exchange for a license to recruit others, who in turn attract even more people into the plan." In essence, the investor pays for the chance to be compensated if his or her recruit leads others into the plan. What Exactly Is Multi-Level Marketing Business Model? Multi-level marketing (MLM) is a type of retail direct selling. This means face-to-face selling away from a permanent retail location, with a multilevel compensation structure by definition. MLM businesses are primaril...