Multi-level marketing (MLM) (also called network marketing (NM)) is a business model which utilizes a combination of direct marketing and franchising. Typically, individuals become associated with a parent company in an independent contractor relationship. Sellers are compensated based on their sales of a product or service, as well as the sales of those they bring into the business.

Multi-level marketing has a recognized image problem because of difficulties in making a clear distinction between legitimate network marketing and illegal "pyramid schemes" or Ponzi schemes. Nonetheless, many NM/MLM businesses operate legitimately in many countries. Because of this image problem many new NM/MLM businesses do not use the words "multi-level marketing" or "network marketing" and instead use terms like "affiliate marketing," "home-based business franchising," etc.

A good MLM scheme needs not to be complicate. Commissions should be earned mainly on the sale of products or services to the end consumer who, in many cases, is also a distributor.

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