Multi-level marketing (MLM) is a sales technique where individuals sell goods or services directly to consumers and earn commissions based on their sales and those of their recruits. The model incentivizes distributors to expand their sales networks and recruit new salespeople, leading to potential increased earnings through downline sales. MLM schemes can be categorized into single-tier, two-tier, and multi-tier marketing structures.

1. What is Multi-Level Marketing (MLM)

2. What is MLM (Multi-Level Marketing)
MLM, or multi-level marketing, also known as network marketing, or referral
marketing, is a sales technique in which a person sells a company's goods or
services directly to customers. It gets its name from multi-level marketing from
the practice in which the salesforce is incentivised to recruit and sell to other
salespeople.
The fundamental goal of MLM is to increase the sales network and, by
extension, increase sales. Distributors get paid based on the revenue they
generate from sales. They also get a percentage of sales made by their
recruits.

3. How Multi-Level Marketing Works
Distributors with sizable downline teams do not promote products on their own. They earn
enough commissions through sales made by their downline. Existing distributors are
encouraged by the commission structure to grow or diversify their downline. It enables the
business to hire a larger sales force, giving it access to more clients.
Multi-Level Marketing Schemes
Multi-level marketing schemes usually come in three different types. They are:
Single-tier marketing
Two-tier marketing
Multi-tier marketing

4. Description
Read the full article to know more
about multi level marketing scheme,
types of marketing and Difference
between MLM and Pyramid
Schemes.
Url:- https://insider.finology.in/juicy-
scams/what-is-multi-level-marketing

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