Maybe I defined MLM wrong? It's the practice of selling goods or services on behalf of a company in a system whereby participants receive commission on their sales as well as the sales of any participants they recruit.
- If I sign up under Dave, I get a certain percentage of the check fee, say 40%
- Since Dave's at the top, he gets 50% on his, but sub-brokers get 10% less (40%) and he keeps 10%
- If I sign up a broker underneath me, I get 10%, Dave gets 10%, and the sub-sub gets 30%

Etc