Multilevel Marketing (MLM) is also referred to as referral marketing or a pyramid marketing structure.
When you work with an MLM, you have two options to receive commissions. The first is similar to an affiliate marketer, where you sell the company's products (or services) to others, receiving a percentage of the sales for all products you sell.
The second is to recruit others to join the same MLM program. Every time someone joins, you receive a commission for their sign up. Dependent on the structure, you may receive commissions when the person you recruited makes sales or also recruits others, creating the famous pyramid structure of an MLM.
Most often, MLMs require referrals and word of mouth marketing to build the network or to sell products, specifically because of the setup / structure of the company.
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