Understanding Multilevel Marketing
Multilevel marketing is a legitimate business strategy that is commonly used by businesses that rely (heavily) on sales to generate revenue. Unlike traditional sales channels, multilevel marketing programs involve the use of networks for sales and to recruit new participants. As such, they’re often referred to as network marketing.
Here’s how it works. Individuals are brought into the business as contractors, independent business owners, distributors, or direct salespeople. These people are then tasked with selling the company’s products and/or services to others, including family and friends. Sales can be done in person or online. They are given a commission for every sale they make.