MLM 101: How Multi-Level Marketing Compensation Works, Red Flags to Watch, and How to Evaluate Opportunities
Multi-level marketing (MLM) blends direct sales with recruiting: independent distributors sell products and earn commissions from their personal sales plus a percentage of sales made by recruits (their “downline”). This structure promises residual income and leverage, but results depend heavily on the company’s compensation plan, product demand, and distributor skills. How MLM compensation typically works–…