Multilevel Marketing (MLM) is a strategy used by some direct sales companies to encourage existing distributors to recruit new distributors by paying them a percentage of their recruits' sales. This builds a pyramid-like financial structure.
Multilevel Marketing (MLM) is a system of retailing where consumer products are sold by independent businessmen and women, often known as distributors. These distributors are encouraged to build and manage a sales force, with their compensation based on both personal sales and the sales of their recruited team.
A Ponzi Scheme is a fraudulent investment scam promising high returns with little risk to investors. The scheme pays returns to earlier investors using the capital of newer investors rather than from profit earned by the operation. Named after Charles Ponzi, it eventually collapses when there are no new investments to cover withdrawals.
