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This article needs additional citations for verification. Although each MLM company dictates its own specific financial compensation plan for the payout of any earnings to their respective participants, the common how To Make Money With Mlm which is found across all MLMs is that the compensation plans theoretically pay out to participants only from the two potential revenue streams. MLM salespeople are, therefore, expected to sell products directly to end-user retail consumers by means of relationship referrals and word of mouth marketing, but most importantly they are incentivized to recruit others to join the company as fellow salespeople so that these can become their down line distributors. MLM, are selling to each other in the hope of one day themselves being at the top of the pyramid. As noted, many MLM companies do generate billions of dollars in annual revenue and hundreds of millions of dollars in annual profit. Only some of the profit is then significantly shared with none but a few individual participants at the top of the MLM participant pyramid. The main sales pitch of MLM companies to their participants and prospective participants is not the MLM company’s products or services.

Rather, the true sales pitch and emphasis is on a confidence given to participants of potential financial independence through participation in the MLM, luring with phrases like “the lifestyle you deserve” or “independent distributor. MLMs have been made illegal in some jurisdictions as a mere variation of the traditional pyramid scheme, including in mainland China. MLM companies already constitute illegal pyramid schemes even by the narrower existing legislation, exploiting members of the organization. The legal distinction between MLMs and traditional pyramid schemes has been characterized by many authorities as a legal fiction. This section does not cite any sources. MLM salespeople are not employees of the MLM company. MLM company for their invested labor and expenses in their MLM “independent business”.

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