Without the "ML". The goal is to resell the software, not recruit people below you to resell and recruit more people, etc.

It's a bog-standard value-added reseller (VAR) model that has been around for decades. It actually can be a great thing because most industries have idiosyncrasies that can benefit from a focused approach from the vendor/reseller.

MLM are about selling the pyramid. Partnerships are about selling the products other produce.

You need more levels for that. Resellers in the model described by the GP make their money by selling the product, not by recruiting more resellers.

Microsoft does this really well.

Channel sales are important. When other people get rich off you, you get rich too.