multi-level marketing

Recruitment-based commerce

Multi-level marketing is a business model where participants earn money both by selling products and by recruiting new sellers, receiving commissions from their recruits' sales.

The structure creates multiple levels of distributors, each taking a cut from those below them.

Critics note that most participants lose money while those at the top profit primarily from recruitment rather than product sales, making many such schemes difficult to distinguish from pyramid schemes.

She lost thousands in a multi-level marketing company selling supplements.

controversy

pyramid scheme

Fraud through endless recruitment

deceptive · Ponzi · lawsuits · FTC · attrition · manipulation · false promises · class action · investigation · complaints

structure

pyramid

Pointed polyhedral solid

  • uplineRecruiter in network marketing
  • downlineSubordinate network members
  • tiersHorizontal arranged levels

hierarchy · organization · distributor · sponsor · network · team · ranks · legs · binary · matrix

culture

entrepreneurship

Creating and managing ventures

financial freedom · empowerment · testimonial · success story · motivational · convention · rally · recognition · personal development · mentorship

compensation

commission

Payment for services rendered

payout · percentage · earnings · volume · PV · BV · qualifying · fast start · breakage

products

starter kit

Initial supplies for beginners

supplements · essential oils · cosmetics · skincare · wellness · demonstration · retail · wholesale · personal use · party plan

recruitment

prospecting

Searching for mineral wealth

invitation · pitch · presentation · leads · prospects · home party · duplication · three-way call · pipeline · onboarding

Categories
Opposites
sales structure

multi-level marketingdirect-to-consumer

Selling without retail intermediaries

wholesale distribution · e-commerce · wholesale

business legitimacy

multi-level marketingtransparent pricing

Clearly disclosed cost structure

honest work · fair trade

employment relationship

multi-level marketingunion job

Position with collective representation

civil service

Family

multi, level, marketing, multiple, multiply, multiplication, multilevel, levels, leveled

Familiarity
Top 500,000
Profile
Timeless · Abstract · Negative · Rated G