MLM stands for multi-level marketing. It is a distribution model characterized by independent, non-salaried, company representatives selling products or services to consumers. These representatives are then paid via two potential earnings streams: 1) commissions for products they sell directly to end, retail customers, and 2) commissions they make for products sold by other people they have recruited to sell for the company, referred to as their "down line."

This process of recruiting other sellers to earn additional income forms a pyramid shape, which is why MLMs are often referred to as pyramid selling. The first representative often has the most earnings potential because they earn commissions on sales from all the representatives recruited below them.