Ever heard the buzzword MLM and wondered what it actually means? Multi-Level Marketing, often called direct selling or network marketing, is a business model where companies sell products or services through a network of independent distributors. Instead of relying on traditional retail outlets, MLM companies recruit individuals to sell their products directly to consumers.
Here's the key: Distributors not only earn money from their own sales, but also from the sales of other distributors they recruit. This "downline" creates a multi-layered sales structure. Think of it as a pyramid, but (hopefully!) with a legitimate product or service at the core. Understanding this structure is crucial for differentiating a genuine MLM opportunity from a potentially problematic pyramid scheme. So, before diving in, do your research and focus on the product and the company's reputation!
