What Is Multilevel Marketing (MLM)?

Some direct sales businesses utilize multilevel marketing (MLM) to encourage existing distributors to recruit new distributors in exchange for a portion of their recruits’ sales. The recruits are the “downline” of the distributor. Distributors also profit from direct product sales to clients.
Amway, a well-known multilevel marketing firm that distributes health, beauty, and home care goods, is an example of a well-known direct sales company.