The concept of
multi-level marketing (MLM)
By LING TSE
The idea behind MLM, is that you make money not just through your own sales work, but by recruiting other salespeople, and making a percentage of any sales that they make. Recruit enough people below you and you can just relax and watch the money roll in.
“According to a report that studied the business models of 350 MLMs, published on the Federal Trade Commission’s website, at least 99% of people who join MLM companies lose money.”
To become a sales representative, you pay some amount of registration fee / sign-up fee plus some amount a month, or some of them has annual fee instead of, depends on company. You then go to work recruiting others to sign up below you.