Multi-level marketing

Rare card · No. 52673

Multi-level marketing (MLM), also called network marketing or pyramid selling, is a controversial and sometimes illegal marketing strategy for the sale of products or services in which the revenue of the MLM company is derived from a non-salaried workforce selling the company's products or services, while the earnings of the participants are derived from a binary compensation commission system. In multi-level marketing, the compensation plan usually pays out to participants from two revenue streams. The first is based on a sales commission from directly selling the product or service. The second is paid out from commissions based on other sellers whom the participant has recruited. In the organizational hierarchy of MLM companies, recruited participants (as well as those whom the recruit recruits) are referred to as one's downline distributors. MLM salespeople are, therefore, expected to sell products directly to consumers by means of relationship referrals and word of mouth marketing....

Read on Wikipedia