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Multi-level Marketing (MLM) or network marketing, is individuals selling products to the public - often by word of mouth and direct sales. The main idea behind the MLM strategy is to promote maximum number of distributors for the product and exponentially increase the sales force. Businesses that involve selling products to family and friends and recruiting other people to do the same are called multi-level marketing (MLM), network marketing, or direct marketing businesses. Multilevel marketing (MLM) refers to a strategy used by some direct sales companies to sell products and services. Multilevel marketing is a legitimate business strategy commonly used by businesses that rely heavily on sales to generate revenue. Unlike traditional sales channels, multilevel marketing programs use of networks for sales and to recruit new participants. As such, they're often referred to as network marketing, because they are selling products directly to consumers using independent sales representatives.