ELI5: Explain Like I'm 5

Multi-level Marketing

Multi-level marketing (MLM) is like a game where you try to sell things to your friends and family and make money. The company you work for makes products, like makeup or nutrition supplements, and they want lots of people to sell their products.

So, you start by buying some of their products yourself and then you try to sell them to your friends and family. If you can get them to buy the products from you, you get a commission, which means you make some money.

But, the game gets even more interesting because you can also recruit other people to sell the products too. When they sell things, you get a little bit of money from their sales too. And, if the people you recruited bring in even more people to sell, you get a little bit of money from their sales too.

It is kind of like a pyramid because there is a big group of people at the bottom and fewer people at the top. The people at the top make the most money because they have lots of people underneath them making sales.

But, it is really important to know that MLMs can be tricky because you might end up buying more products than you can sell or recruiting people who don't make any sales. Some people can make a lot of money with MLMs, but others end up losing money. It is always important to do your research and be careful before you join one.
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