Named models that compensate participants for recruiting other participants or referring customers, including paying a commission for referred sales, a multi-level structure that rewards recruiting new distributors as well as selling product, and the unlawful variant of that same structure where reward comes primarily from recruitment rather than genuine product sales. Belongs here: any model whose defining act is compensation tied to recruitment or referral. Multi-Level Marketing and Pyramid scheme are grouped together because business and regulatory literature treats them as a legitimate structure and its unlawful variant on the same axis, not as unrelated ideas.
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1. Wikipedia: Multi-level marketing
WikipediaMulti-level marketing, History sectionQuote, Multi-level marketing, History section
multi-level marketing style businesses existed in the 1920s and the 1930s, such as the California Vitamin Company
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