The history of MLM and its evolution over the years is very interesting. If you want to find out about in detail, there are many books describing this fascinating industry's development. View this outstanding and comprehensive online MLM presentation by Dr. Charles King, Harvard Ph.D. and professor in marketing at the University of Illinois at Chicago to receive a simple and clear explanation how you can become active in the MLM industry and what is in store for Network marketing in the future. This is what will make a difference in your financial health. MLM or Network Marketing is a method of marketing products and services through independent representatives who refer customers to the Multi-Level Company they represent.
All companies have certain expenses involved in running their businesses.
Some of these are production costs, personnel, advertising and sales budgets. This is relationship marketing. Jenny would not have been sponsored unless YOU had sponsored Paul. That's why XXX MLM company pays you on the sales that both Paul and Jenny produce. Pyramid schemes are illegal.