Multi-level marketing (MLM) is a successful business model that combines direct marketing with franchising

Multi-level marketing businesses function by recruiting top salespeople to sell a product and offer additional sales commissions based on the sales of people recruited into their downline, an organization of people that includes direct recruits, recruits' recruits, etc. This arrangement is similar to franchise arrangements where royalties are paid from the sales of individual franchise operations to the franchisor as well as to an area or region manager.

MLM businesses operate in the United States in all 50 states and in more than 100 other countries, and new MLM businesses use terms like "affiliate marketing" or "home-based business franchising". Virtually all require that the business owners find their own lead sources.

In the most legitimate MLM companies, commissions are earned only on sales of the company's products or services. No money may be earned from recruiting alone ("sign-up fees"), though money earned from the sales of members recruited is one attraction of MLM arrangements.

New salespeople may be required to pay for their own training and marketing materials, or to buy a significant amount of inventory. Sales people are responsible for finding and securing their own leads. Quality leads can be purchased from a variety of sources. Over the last few years the internet has played a greater role in providing lead opportunities to MLM sales people. Several of the most noteworthy sources of MLM leads are shown on this page.