Network Marketing

Multi-level marketing (MLM, now sometimes called network marketing) is a business model that combines direct marketing with franchising.Multi-level marketing businesses function by recruiting salespeople (also called Distributors, Independent Business Owners, IBOs, Franchise Owners, Sales Consultants, Beauty Consultants, Consultants, etc.) to sell a product and offer additional sales commissions based on the sales of people recruited into their downline, an organization of people that includes direct recruits, recruits' recruits, etc. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager, but in some MLM programs, there can be seven or more levels of people receiving royalties from one person's sales.
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using a multi-layer of people to market and sell products; the person at the top takes commission from those below and those below take commission on products below them and so on e.g. Amway; compare with pyramid selling which is illegal.

using a multi-layer of people to market and sell products; the person at the top takes commission from those below and those below take commission on products below them and so on e.g. Amway; compare with pyramid selling which is illegal ; see Multi-level marketing.