Multi-Level Marketing vs Pyramid Schemes

 Multi-level Marketing

Multi-level Marketing (MLM) or network marketing, is individuals selling products to the public - often by word of mouth and direct sales.

 The main idea behind the MLM strategy is to promote maximum number of distributors for the product and exponentially increase the sales force.

Multi-Level Marketing vs Pyramid Schemes

 

The promoters get commission on the sale of the product as well as compensation for sales their recruits make thus, the compensation plan in multi-level marketing is structured such that commission is paid to individuals at multiple levels when a single sale is made and commission depends on the total volume of sales generated.

Location: United States

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