What is Multi-Level Marketing and it's significance?

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Multi-Level Marketing (MLM) is a business model which consists of Network Marketing and Direct Sales. MLM is commonly known as ‘network marketing’ or ‘referral marketing’. The distribution-based marketing strategy consists of multiple layers/tiers of commission overriding.

The purpose of the Multi-Level Marketing strategy is to focus on distribution-based marketing which offers various kinds of commissions by distributing products to consumers. MLM companies recruit individuals who persuade others to join the sales force to sell their products.
The more you recruit and sell, the higher you climb in the organization hierarchy, reaching the top of the pyramid. Each recruited person gets an opportunity to create its own team by recruiting more independent distributors. 

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