Realities of MLM Business:
1. “MLM is a sales system under which an agent (or salesperson or distributor) of a company receives a commission on his own sales and a commission on the sales from each person he convinces to become an agent. First a person becomes an agent of the company by buying a product of the company and registering as its member; (or just registering as its member without buying any product). After that each agent has to sell the company's products or services to other individuals and recruit those as agents to sell the company's products or services. Each new person the agent gains are asked to bring his own recruits. The result is that under an agent a hierarchical substructure gets developed known as a down line. Each distributor gets sales commissions on his or her direct product sales. He or she also makes a commission on the sales of the distributors in their down line according to the method of a pyramid scheme.”