multi-level marketing

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multi-level marketing

a system of selling a firm's product which involves a ‘pyramid’ of sales persons. Persons sell the product to friends, acquaintances etc. but are also offered a financial inducement to recruit other people as sales persons who, in turn, recruit yet more sales persons. In this way, person A recruits person B who recruits person C and so on thus creating an expanding chain of sales persons, each receiving a commission on their own sales and additionally further commissions based on the sales of people they have recruited directly or indirectly.