What exactly is an MLM?

MLMs, or multi-level marketing companies, are businesses that use direct selling to distribute products. Consultants sell to their friends, relatives and broader network. They also recruit others to sell products to their networks. When a consultant recruits a new seller, that person becomes their “downline”, and they earn commission from their downline’s sales. In turn, part of their earnings goes to their “upline” – the person who recruited them.