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MLM comes in several guises. At different times, it has been called Network Marketing or Direct Selling, though they all mean the same thing (for the purposes of this post, I’ll be referring to this phenomenon as MLM).
MLM schemes work by charging promoters an upfront “membership fee” in exchange for the license to sell the company’s products, which will have to be purchased at additional cost. In turn, these promoters (also known as Associates, MLMers, Partners or Investors) are rewarded for recruiting more promoters to the company.