Multilevel Marketing (MLM), also known as Network Marketing, is a business model that relies on a network of independent distributors or representatives to sell products or services. These distributors earn income through direct sales and by recruiting new distributors into their downline.
Product/Service Promotion: Distributors promote and sell products or services directly to consumers.
Recruitment: Distributors can also recruit new members to join the MLM business, building a downline or network of distributors.
Commission Structure: Distributors earn commissions not only on their own sales but also on the sales made by those they recruit and the recruits in subsequent levels of their downline.
Yes, MLM is legal in many countries, but regulations may vary. However, some pyramid schemes disguise themselves as MLM and are illegal. Legitimate MLM companies focus on product sales and have a sustainable compensation plan, whereas pyramid schemes rely primarily on recruitment.
Yes, many MLMs are open to anyone interested in becoming a distributor. However, it's essential to understand the commitment involved and to have realistic expectations about potential earnings.
Distributors earn money through direct sales and by receiving commissions based on the sales made by their downline (recruits). The structure often includes various ranks or levels, each with its own set of bonuses and incentives.