Bunny Babbett has just become an independent contractor selling the products of Tweethouse, a firm that makes elaborate (and expensive) birdhouses and bird feeders. Bunny was recruited to the firm by Sylvester Katt, who already sells the Tweethouse products as an independent contractor. Sylvester told Bunny that both he and she would receive a commission on every item she sold. He also pointed out that she could boost her income significantly by recruiting more people to sell the products, because she would receive a commission on her recruits' sales. The arrangement described by Sylvester suggests that Tweethouse is using:

a. multilevel marketing
b. hierarchial distribution
c. line and staff selling
d. the Lorenzo method.

MLM stands for multilevel marketing also referred to as the network, referral marketing and the pyramid selling, in this kind of marketing strategy, in which the sake of services or products where the revenue of the MLM company is derived from the non- salaried workforce selling the services and the products of the company.

In this marketing strategy, sales person are expected to recruit more sales person and each sales person is an independent contractor where they receives a commission on the basis of sale.