What is MLM (Multi Level Marketing)?
Updated October 21, 2026
MLM is a business model where you earn from your own sales plus a share of sales made by people you recruit.
In an MLM you sell products and build a team called a downline. You earn a cut from their sales too.
Some people do well, but many earn little after costs. Look at the income disclosure before you join.
A real MLM focuses on products people want. If it's all about recruiting with no real product, walk away.
Example
You join a company, sell its products and earn a bonus when people you brought in make sales.
Questions people ask
Is MLM a pyramid scheme?
Not by law if real products are sold to real customers, but some cross the line.
Can MLM be passive?
Team income can keep coming, but building it takes active work.
Related
Fresh from the site
- Read this before your next trade (quick story)
- Resistance rejection (quick story)
- Bullish engulfing (quick story)
Work out your own number with the quit your job calculator, or take the passive income quiz.