Otherwise known as network marketing, referral marketing, and pyramid selling, multi-level marketing as defined by Investopedia is a strategy used by some direct sales companies to encourage existing distributors to recruit new distributors who are paid a percentage of their recruits' sales. These recruits are the distributor's 'downline'. Simply put, a multi-level marketing model involves a pyramid structure of non-salaried participants who are paid a commission whenever they or a 'downline' of theirs makes a sale. Multi-level marketing (MLM) salespeople/independent retailers sell directly to consumers through relationships and word of mouth. Although controversial, multilevel marketing is a legitimate business strategy. Those interested in joining a multi-level marketing program must however watch out for the thin line that separates genuine multi-level marketing from pyramid schemes. Genuine multilevel marketing companies sell their products primarily
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