It is important that we define multilevel marketing and point out the difference between multilevel marketing and direct selling which are sometimes wrongly used interchangeably. Direct selling is an approach in the distribution and marketing in which product(s) or service(s) are sold via a network of independent distributors or representatives. This method relies on distributors engaging in personal sales, rather than opening retail shops. These distributors/representatives earn a commission on the sale price of the product(s) or service(s). A multilevel marketing model is usually employed by companies that engage in direct sales. Otherwise known as network marketing, multilevel marketing builds on the direct sales method, incorporating the recruitment and training of other representatives/distributors. Distributor A recruits and trains distributor B and receives a commission on distributor B's sales, and on distributors C and D recruited by distributor B; that's how...
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