On TikTok, the acronym ceaselessly refers to multi-level advertising and marketing. This enterprise mannequin depends on people recruiting new individuals to promote services or products, incomes fee from their very own gross sales in addition to a share of the gross sales generated by these they recruit. An instance could be a consumer posting a video selling a magnificence product and inspiring viewers to affix their “crew” to turn out to be distributors themselves.
The prevalence of this time period stems from each its potential for producing earnings and the controversies surrounding it. Whereas some view it as a legit entrepreneurial alternative, others take into account it a pyramid scheme, highlighting the dangers of economic losses for these becoming a member of at later phases. The historic context entails the evolution of direct gross sales methods and the growing use of social media platforms to advertise these ventures.