Recruitment: Distributors are also tasked with recruiting others to join the company as sellers. When someone recruits new members, they earn a percentage of the sales made by those recruits. This creates a hierarchical structure, where individuals at the top earn from the work of their downline.
Commissions and Bonuses: In a traditional MLM, there is a compensation plan that rewards individuals for achieving certain sales targets and recruiting others. These bonuses and commissions are paid out based on performance.
