Strategic Financial Innovations: Emerging Trends and Policies
Articles

The Concept of Multi-level Marketing - Ongoing Controversial Financial Practices

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  • Ms. Soumi Chakraborty
Ms. Soumi Chakraborty
Assistant Professor, School of Management Studies, Swami Vivekananda University, Barrackpore, West Bengal

Published 2025-11-29

Keywords

  • Multi-Level Marketing,
  • business,
  • companies,
  • pyramid scheme

How to Cite

Chakraborty, Ms. Soumi. “The Concept of Multi-Level Marketing - Ongoing Controversial Financial Practices”. Swami Vivekananda University Press, Nov. 2025, pp. 81-91, https://swamivivekanandauniversitypress.com/index.php/svup/article/view/115.
Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Abstract

Multi-Level Marketing (MLM) is a business model where individuals earn income by selling products or services and recruiting others to do the same. Participants in MLM typically earn commissions not only for their own sales but also for the sales made by those they recruit, as well as by the recruits of their recruits, forming a hierarchical structure. MLM companies often emphasize recruitment and building a downline organization as key to success. While MLM can offer flexibility and potential for significant income, critics argue that it can resemble a pyramid scheme and may disproportionately benefit those at the top of the hierarchy. Regulatory scrutiny and controversy surround some MLM companies due to concerns about misleading practices and exploitation of participants. This paper is an effort to simplify the concept of multilevel marketing with the help of previous.

DOI - https://doi.org/10.65525/SVUP.9788197589423.2025.81-91.

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