Multilevel marketing (MLM) also known as network marketing, direct selling, or referral marketing is a marketing strategy of company people other than direct selling in which the company products are sold by the people who are introduced by company promoters . Thus they create a down line of distributors and consumers and make hierarchy of levels. You get benifits from every distributors in your downline.
Multilevel marketing is about making profits by creating your own competitors. You not only get the benifit of your own sells but also get share from the sales of your predecessors too.