Multi-level marketing (MLM)

 Multi-level marketing (MLM), also known as network marketing or direct selling, is a business model in which individuals join a company as independent distributors or sales representatives. These distributors earn income through both direct sales of products or services and by recruiting new distributors into their downline.

In an MLM structure, distributors typically earn commissions or bonuses not only from their own sales but also from the sales made by the distributors they have recruited and the ones recruited by those in their downline. This creates multiple levels or tiers within the organization, hence the term "multi-level marketing."

MLM companies often offer a wide range of products or services, including cosmetics, wellness products, household goods, and more. Distributors are encouraged to sell these products to customers and also to recruit others to become distributors themselves, forming a network or "downline" organization.

Proponents of MLM highlight the potential for individuals to build their own businesses, achieve financial independence, and benefit from flexible working arrangements. They argue that the MLM model provides opportunities for entrepreneurship, personal development, and earning potential through residual income.

Critics of MLM raise concerns about its resemblance to pyramid schemes, which are illegal in many countries. Pyramid schemes primarily focus on recruitment and often involve no genuine product or service sales. In contrast, MLM companies typically offer legitimate products or services, but critics argue that the emphasis on recruitment and the complex compensation structures can lead to unsustainable business practices and a high failure rate for participants.

It's important for individuals considering involvement in an MLM opportunity to thoroughly research the company, its products, the compensation plan, and the potential risks and rewards. Due diligence and critical evaluation of the business model, along with understanding legal regulations and consumer protection laws in your jurisdiction, are essential before making any commitments in the MLM industry.