Understanding Multi-Level Marketing

Multi-Level Marketing (MLM), also known as network marketing, is a business model where individuals sell products directly to consumers and earn commissions not only on their sales but also on the sales made by the people they recruit into the business. This creates a hierarchical structure of distributors, known as a "downline." While MLM offers opportunities for entrepreneurship with low startup costs, it's crucial to distinguish between legitimate MLM businesses and illegal pyramid schemes, where earnings are primarily from recruitment rather than product sales.