The Difference Between E- Commerce and Multi Level Marketing (MLM)

E-Commerce-

: commerce conducted over the Internet and telephone

MLM-

: A scheme in which a person (as a "seller") buys a certain amount of product from a "distributor", and then sells for a profit.

E-Commerce are programs through which a vendor pays commissions to registered affiliates in exchange for generating clicks, leads, or sales.

Multi Level Marketing is a strategy in which the sales people are compensated not only for their own sales, but also for sales from people they recruit. These programs are also known as pyramid schemes and have reputation for cult like behavior. Most notably the emphasis is on the recruitment of others over actual sales, and many encourage if not require members to purchase the products. MLM products tend to be consumables such as soaps, lotions, personal hygiene products, household times or cleaning supplies.

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