Multi level marketing is one of the most successful and well-known business models of all time. It is a tried and true method of selling goods and services. Existing MLM members of an MLM network advertise and sell their products to others, as well as recruit new members. Members are compensated based on the sales of their recruits. New recruits join the distributor's downline, or network, and are encouraged to make sales in order to earn money. Although the majority of MLM companies are legitimate, some operate illegally as pyramid schemes. So, what exactly is multi level marketing? How does it work?