Multi Level Marketing by Definition: Multilevel Marketing, or MLM, is a system for selling goods or services through a network of distributors. The typical Multilevel Marketing program works through sales and recruitment. You are invited to become a distributor, sometimes through another distributor of the Multilevel Marketing company's products and sometimes through a generally advertised meeting. If you choose to become a distributor with the Multilevel Marketing company, you'll earn money both through the sales of the MLM's products and through recruiting other distributors, by receiving a portion of the income these distributors generate. The distributors that you sign up with your Multilevel Marketing plan are called your downline. The distributor that originally recruited you is called your upline. Often he or she will give you some help getting started, including training. Multilevel Marketing plans are legal. However, if you are considering becoming part of an MLM company, you need to investigate the opportunity thoroughly, just as you would with any other proposed business venture. Not all Multilevel Marketing plans are created equal. Successful well-known MLM businesses include Mary Kay Cosmetics, Avon, and Cognigen. Also Known As: MLM, Network Marketing. Alternate Spellings: Multi-level marketing. Examples: Because Penny worked really hard and truly believed in the product line, she was a very successful Multilevel Marketing distributor.