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Although an MLM company holds out those few top individual participants as evidence of how participation in the MLM could lead to success, the reality is that the MLM business model depends on the failure of the overwhelming majority of all other participants, through the injecting of money from their own pockets, so that it can become the revenue and profit of the MLM company, of which the MLM company shares only a small proportion of it to a few individuals at the very top of the MLM participant pyramid. Participants, other than the few individuals at the top, provide nothing more than their own financial loss for the company's own profit and the profit of the top few individual participants.
Multi-level marketing, also known as network marketing or MLM, is a way to own a small business while using a proven system to sell designated products and recruit others to do the same. Multi-level marketing derives its name from the process of sponsoring other owners, or distributors, known as "downline", and earning income from their sales and sponsorships. Although each MLM provides unique tools to help you grow your business, the types used may be common to many network marketing systems.