What is MLM?
Economists define pyramid selling as: MLM organizations sell or provide services through multi-level and independent pyramid selling. In addition to selling goods to earn profits, each pyramid seller can also introduce and train others to become new pyramid sellers, establish new sales networks and sell the company's goods. While the company gets more profits, each pyramid seller also gets the corresponding price difference in his own sales network.

MLM can be divided into two basic forms: "person-to-person MLM" and "object-to-person MLM". The way of "MLM" is to pull people's heads, and the MLM organization is a "pyramid" radial network. The more you pull your head, the higher your personal level, and the way to get rewards is to exploit the computational gradient from a lower level of development. "Direct marketing" is a multi-level direct selling under the guise of direct selling of goods, which deviates from the inflated price of goods. In addition to selling goods to earn profits, each pyramid seller can also introduce and train others to become new pyramid sellers, and in turn make profits.

When pyramid sellers buy back goods at inflated prices, they must pass on their psychological imbalance by developing downline, which can make up for the goods that pyramid sellers pay more. Once the development fails, they can only rely on "cheating". Theoretically, its downline is infinite, and everyone can make money, but in real life, it always has the end user, that is, the base of the pyramid. Only a few people at the top of the pyramid make money, which is the law of pyramid selling.