MLM is just a way, a method to get a product or service to the end consumer. MLM, really refers to the way you get paid, multiple levels. The reason this model works really well, is that the mlm (network marketing) company doesn't have to pay for all the "middle men"-no advertising, vendors etc...

There's a lot that goes on to get a product from the formulation to the grocery store shelf. Most people  would be surprised how much extra costs go into products before they get them. These cost are non-existent to a large degreee in network marketing. This is why some companies go this route and just get distributors to market the products for them.