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Multi-level marketing (MLM), also called pyramid selling, network marketing, and referral marketing, is a controversial, pyramid-shaped marketing strategy where profit is theoretically derived from two revenue streams.

The percentage of an MLM company's total profit which is ultimately distributed to its contingent of salespeople, away from the MLM owners or shareholders, differs from one MLM company to the next. However, the percentage paid to salespeople is usually a smaller share of overall company profits, and it is distributed in complex compensation plans which ultimately funnel most to the few individual salespeople/participants in the upper-most levels of the MLM pyramid.

services

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