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Understanding
Multi-Level Marketing (MLM)
Multi-level marketers not
only sell a company's products, but they also earn extra money as
recruiters. They try and convince others to join the business selling
the same products to others.
When someone signs up underneath
them to do sell the products, they become the "downline". Then
recruiters then earn a commission on every sale their downline makes.
As their downline recruits new people, the original recruiter also earns
commission on sales those new people make too.
Most MLM businesses are legitimate
and sell via direct sales or home parties (see the MyMommyBiz
Home Party Plan Listing for specific businesses) but as with any business,
you must do research as some pyramid schemes disguise themselves as a
legitimate multi-level marketing business.
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