Similarly, if the recruiter himself manages to sell the product and his recruit the distributor under him also makes a sale then the recruiter wins more. So, the number of distributors working under you sells the more profit you earn.
Every person recruited can become a distributor by recruiting some under him. This is how this strategy works.
Another way is Network marketing system. this can be a single tier system. There will not be multiple recruiters or no need to recruit anyone, just sell the product and earn a compensation.