Multi-level marketing (MLM) is a type of network marketing in which a business is built by creating a tiered network of independent distributors to promote and sell a company's products or services.
Independent distributors are micro-marketers who recruit, train, and manage other marketers. These marketers in turn, must also find their own micro-marketers in order to make money.
To be classified as a MLM system, at least two sales levels (also referred to as "tiers") must exist. For example, if you start an MLM business, you are at the top - level one. If you recruit someone they become the second level. Each time they make a sale they make money and you get a portion of their sales.
Distributors at the top level make the most money; those at the bottom level make the least.
MLM is a world of opportunity but is also filled with scam artists and get-rich quick schemes that simply do not work.