Multi-Level Marketing (MLM) is a method based on distributors selling goods or services, in the meantime attracting new recruits to the company. These salespeople are incentivized to draw others in by receiving a percentage from their sales. The same way, the newbies are encouraged not only to sell products but to look for likely candidates to join under their wing.
“Sounds a lot like a pyramid scheme,” you might think. And you’re right. The two are definitely alike; however, one is legal, the other—not so much. Also known as network marketing, MLM is a legitimate process, yet the line between the two can often get somewhat faded.