Question
Is network marketing the same as MLM?
What to do next:
- Set the label aside and read the compensation plan.
- Check what the income disclosure shows for new participants.
- Ask whether you can earn net income without recruiting.
Why this matters
Some people use network marketing, direct selling, and MLM in overlapping ways.
The label matters less than how compensation works, what participants must buy, and what typical participants earn after expenses.
Questions to ask before joining
- How does the compensation plan define customer sales, participant purchases, and team volume?
- What does the income disclosure show for new participants?
- Can I earn net income without recruiting?
Related recruiting phrases
Helpful next pages
- Someone pitched me an MLM. What should I do?
- Before You Join an MLM
- Before You Pay
- Documents to request before joining an MLM
- MLM expense worksheet
- Scripts you can use
Sources
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Regulator guidance
Multi-level Marketing Businesses and Pyramid Schemes
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Regulator guidance
Business Guidance Concerning Multi-Level Marketing