Multi-level marketing Software (MLM) is a marketing strategy in which the sales force is
compensated not only for sales they personally generate, but also for the sales
of the other salespeople that they recruit. This recruited sales force is referred
to as the participant's downline, and can provide multiple levels of compensation.
MLM Software companies have been a frequent subject of criticism as well as the target of
lawsuits. Criticism has focused on their similarity to illegal pyramid schemes,
price fixing of products, high initial start-up costs, emphasis on recruitment of
lower-tiered salespeople over actual sales, encouraging if not requiring salespeople
to purchase and use the company's products, potential exploitation of personal relationships
which are used as new sales and recruiting targets, complex and sometimes exaggerated
compensation schemes, and cult-like techniques which some groups use to enhance
their members' enthusiasm and devotion.