MLM stands for Multi Level Marketing and is also known as Network Marketing. A company is considered MLM where the products or services are distributed by independent contractors also known as distributors. These distributors are compensated based on their own sales as well as the sales of other distributors they have recruited and trained. The terms “multi level” and “network” come from this concept of recruiting and training a huge group of distributors (also known as a downline) as your own sales force within this company.
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