Multi Level Marketing

Multi-level marketing (MLM) is a business model that combines direct marketing with franchising.

Multi-level marketing businesses function by enrolling unsalaried salespeople (also called by MLM companies as Distributors, Independent Business Owners, Franchise Owners, Sales Consultants, Consultants, Independant Agents, etc...) to sell products and meanwhile earn additional sales commissions based on the sales of people enrolled into their downline, an organization of people that includes direct recruits, recruits' recruits and so on. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager. There can be multiple levels of people receiving royalties from one person's sales.