Multilevel Marketing (MLM) should not be confused with illegal pyramid schemes. Multilevel Marketing is legal in all 50 states.

Multilevel Marketing Is a strategy used by many direct sales companies to sell their products and/or services. Existing staff is encouraged to promote and sell products and/or services directly to others and bring new or additional recruits into the business. Those that recruit others are paid a percentage of their recruit's sales. Multilevel Marketing Is also referred to as network marketing, and direct sales marketing. It involves person-to-person sales. It is similar but not the same as affiliate marketing.

Some of the large Multilevel Marketing-companies in the United States and the dates they were established include: (1) American Income Life Insurance - 1951, (2) Avon Products - 1866, (3) Mary Kay - 1963, (4) Shaklee - 1956, (5) Tupperware - 1964, (6) Primerica (NYSE) - 1977, (7) Cutco - 1949, (8) Discovery Toys - 1978, (9) Amway - 1959, (10) Legal Shield - 1972, (11) World Financial Group - 1991, (12) Herbalife (NYSE) - 1980, and (13) eXp Realty - 2009.

Direct Selling Association

The Direct Selling Association (DSA) is a large trade group with more than 130 company members, most of which use multi-level marketing compensation plans. DSA belongs to the National Retail Federation, which is the world's largest retail trade association.

Business Plan

Ideas to Expand, Protect and Improve Your Small Business