Created By: Kuldeep Kumar, 1 Sep 2024, 10, 4

MLM, or Multi-Level Marketing

MLM, or Multi-Level Marketing, is a business model where individuals sell products directly to consumers and earn commissions not only on their own sales but also on the sales made by people they recruit into the business.

This structure creates multiple levels of salespeople, or "downlines," each of whom can recruit more sellers, expanding the network. The income potential in MLM comes from both direct sales and the sales generated by the recruits and their recruits, forming a chain.

Key characteristics of MLM include:

Direct Sales:

MLM companies often sell their products directly to consumers through a network of independent distributors or representatives rather than through traditional retail channels.

Recruitment:

Distributors in an MLM program are encouraged to recruit others to join the business. When they do, they earn commissions on the sales made by those recruits.

Earnings Structure:

Income in MLMs comes from personal sales of products and from a percentage of the sales made by recruited members down the line. The structure typically incentivizes building a large network of recruits to maximize earnings.