Multi-Level Marketing

Ever hear of a pyramid scheme? This is the legal version.

Think: Avon, Tupperware, Herbalife. These companies don’t sell directly to customers. Instead, the company sells its products to representatives, who then sell to individuals. That situation provides the "multi-level" part. If you want to buy something, you don't go directly to the company. There are several levels of salesmen between you and the manufacturer.

When your friends host a candle party, or an adult toy party, or a gathering to sell protein shakes, they are involved in multi-level marketing. They start by selling to customers. Then, to make real money, they advance to the point where they're bringing in their own salespeople under them. Then, if all goes well, those folks bring in a new group of salespeople to work under them.

Levels upon levels...with fewer people at each stop on the way up the structure. Shaped almost like, uh...a pyramid.