Question
Is network marketing the same as MLM?
Short answer: The terms are often used differently by different people, so focus on the compensation plan and typical participant outcomes.
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
Sources
- Multi-level Marketing Businesses and Pyramid Schemes, Federal Trade Commission . Accessed 2026-06-14. Support type: Regulator guidance.
- Business Guidance Concerning Multi-Level Marketing, Federal Trade Commission , 2024 . Accessed 2026-06-14. Support type: Regulator guidance.