In multilevel marketing, salespeople have little incentive to recruit new salespeople, because the new salespeople may compete against them and reduce their income.

Question

Quizplus · Accepted Answer

In multilevel marketing, salespeople receive a commission not only on their own sales, but also on the sales of any new salespeople they recruit. This gives existing salespeople an incentive to recruit new people.

In Multilevel Marketing, Salespeople Have Little Incentive to Recruit New