Multi-level marketing (MLM) is a business model in which individuals, called distributors or associates, sell products directly to consumers and earn commissions based on their own sales and the sales of other distributors they recruit.

MLM companies often claim that their products are superior to those sold through traditional retail channels, and that selling the products directly to consumers allows distributors to offer consumers a better price. Distributors are also incentivized to recruit new distributors into the company, as they can earn a percentage of the sales made by these new recruits.

However, MLM has been criticized for being a pyramid scheme, in which the focus is on recruiting new distributors rather than on selling products. This can result in a lack of transparency, as distributors may be more focused on recruiting new members than on providing accurate information about the products they are selling.

MLM can also be controversial because of the high pressure sales tactics that some distributors use to recruit new members. This can lead to consumers feeling misled or taken advantage of, and can damage the reputation of the company and its products.

Overall, it is important for consumers to be aware of the potential risks and challenges associated with MLM businesses, and to carefully evaluate any opportunity before committing to it. It is also important for MLM companies to be transparent about their business model and to ensure that their distributors are acting ethically and following all relevant laws and regulations.