What Is MLM?

Multi Level Marketing (MLM), also known as Network Marketing, and sometimes referred to as Referral Marketing is a system of distribution of products and services that eliminates the traditional retail and distribution chain. In MLM sales are generated by individuals that are referred to as independent business/marketing associates.

These independent marketers are rewarded for building a network of independent marketers. Each new independent marketer also has the opportunity to earn commissions from the sales generated by the network they build.

Each independent marketer acts like a franchise operator, they generate the sale, and the company fulfils it.

The Multi Level part comes into it as each independent marketer gets paid a commission percentage on sales generated by other independent marketers in levels beneath them in the network.

American companies like Shaklee and Amway have made Multi Level Marketing popular.