MLM, or multi-level marketing, is a business model in which individuals are recruited to sell products or services directly to consumers, while also recruiting others to do the same. This creates a hierarchical structure of distributors, with each person earning a commission not only on their own sales, but also on the sales of those they have recruited. MLM companies often use a pyramid-shaped compensation structure, with top-level distributors earning the most and those at the bottom earning the least. While some view MLM as a legitimate business opportunity, others criticize it as a pyramid scheme that relies on constantly recruiting new members rather than selling quality products.