Multi-level marketing (MLM) is a business model where a person sells a companys products or services through person-to-person sales, which is also known as direct selling. MLM companies hire employees as independent contractors who act as "distributors" and make money two ways: by selling the companys products to retail customers who are not involved in the MLM, and by recruiting new distributors and earning commissions based on what they buy and their sales to retail customers. The recruits, the people they recruit, and so on, become the sales network, or "downline". MLMs are often best-suited for people with an entrepreneurial spirit, who can set their own goals and schedules, who are good at sales, and who can effectively network with others not only to sell products but to recruit new marketers. However, most people who join legitimate MLMs make little or no money, and some of them lose money. It is important to note that some MLMs have been accused of operating as pyramid schemes, which are illegal.