Multi-Level Marketing
/ˌmʌltiˈlɛvəl ˈmɑːrkɪtɪŋ/
Definitions
- (n.) A marketing strategy where salespersons earn income from direct sales and from recruitment of additional salespersons, often raising regulatory scrutiny as to whether it constitutes a legal sales network or an illegal pyramid scheme.
The company was investigated for potentially operating an unlawful multi-level marketing scheme.
Forms
- multi-level marketing
Related terms
See also
Commentary
Legal definitions often focus on distinguishing lawful multi-level marketing from illegal pyramid schemes, highlighting the importance of product-based sales versus compensation for recruitment.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.