Pyramid Selling is banned in most countries and rightly so. And so it goes. Multi-Level Marketing is the concept of teamwork selling the same product for the same price to people who in turn do the same thing. The customer pays the original price from the merchant or marketer. The team members gain by earning commission from the company on every sale and on the sales of the members they introduce into their team.
Companies set their product price based on costs and profit margins.
Included in the costs are the commission rates calculated for their distributors. Multi-Level Marketing is still frowned upon by many and was seen as the least attractive of all the marketing concepts. However Multi-Level Marketing is now being taught as part of the curriculum in many of the world's top business schools. Multi-Level marketing is now 50 years old. During the first forty years there were very few innovations.