History
The origin of multi-level marketing is often disputed; but multi-level marketing style businesses existed in the 1920s,[24] 1930s California Vitamin Company,[25] (later named Nutrilite) or California Perfume Company (renamed as "Avon Products"),[26]
Setup
MLM binary tree structure. The blue individual will receive compensation from the sales of the downline red members.
Independent non-salaried participants, referred to as distributors (or associates, independent business owners, independent agents, etc.), are authorized to distribute the company's products or services. They are awarded their own immediate retail profit from customers plus commission from the company, not downlines, through a multi-level marketing compensation plan, which is based upon the volume of products sold through their own sales efforts as well as that of their downline organization.
Independent distributors develop their organizations by either building an active consumer network, who buy direct from the company, or by recruiting a downline of independent distributors who also build a consumer network base, thereby expanding the overall organization.
