What does MLM mean?

Answer 1

MLM stands for Multi Level Marketing. Some times called Network Marketing. A way of organizing people for the objective of selling goods and services to members and to the public. When operated correctly the business structure is similar to most corporate sales organizations which have sales people earning commissions and sales managers receiving a commission or bonuses based on the collective team's sales. All large corporations tend to have multiple levels of sales management with incentives and bonuses paid for hitting sales targets. In some cases the same MLM structure can be used to create an illegal business where most of the actual sales activity is produced by signing up new members who then try to sign up more new members. Maybe better known as pyramid selling or a Ponzi scheme. There are clear distinctions between a legal operation and an illegal operation. Those operating illegally are generally closed down or implode while those operating legally continue to sell and deliver goods and services to the broader marketplace. The sale of real goods and services to the public was used as a litmus test in a court ruling where MLM was judged to be a valid and legal way of organizing a business.

Answer 2

MLM, or Multi-Level Marketing, is a business model where participants earn money not just by selling products or services but also by recruiting others into the system. Each new recruit forms a "downline," and the recruiter earns commissions based on their sales and the sales made by their recruits. While some MLMs operate legally and focus on product sales, many have been criticized for resembling pyramid schemes, where the primary focus is on recruitment rather than genuine product demand. It's important to research any MLM opportunity carefully, as many people struggle to make sustainable income, while a small percentage at the top profit the most.