What are you doing, direct selling or pyramid selling? This is a very interesting question.
What is direct selling? What is MLM?
Direct selling is a sales model in which direct sellers directly sell products and services to consumers and direct sellers provide corresponding services.
When it was introduced to Asia from Europe and America, Taiwan Province Province and Hongkong were early Chinese communities, and people in Taiwan Province Province translated it as "direct selling" because the terminal link was directly provided to consumers. Hong Kong people translate it as "pyramid selling" because multi-level direct selling is introduced by one marketer to another. In other words, Taiwan Province people are concerned about the sales link, while Hong Kong people are concerned about how each marketer enters this sales system.
Later, after constant legal norms, the state divided similar sales behaviors into illegal pyramid selling and direct selling, legal direct selling companies implemented access system, and relevant state departments issued licenses. A licensed company is a legal company, otherwise it is an illegal company.
However, if we ask people around us, or search online, we will find that even if the country is clear and legal, and even respected at home and abroad, direct selling enterprises are still controversial and even derogatory. Smell "pin" color change, even swearing, very anxious to eat its meat, sleep its skin. The reasons are worth studying by practitioners.
Everything is two sides of a coin. Food addition, bean curd dregs project, financial fraud, traffic accidents and corruption are not industry problems, but the performance that people's quality and legal system need to be improved. In order to illustrate the advantages of direct selling and other industries, many direct selling practitioners talk about belittling companies and their products in other industries; In order to show that his company is good, he denounced the systems and models of other direct selling companies, as if the employees of other companies would immediately change from being in dire straits to being successful in my official career. The importance of choice is infinitely magnified. Have you noticed that there is no free lunch in the world?
Will legitimate direct selling companies be operated as pyramid schemes?
If employees blindly enlarge the benefits of direct selling, companies and products, and induce people to join and form networks, instead of paying more attention to providing products and services to customers, they will pay more attention to "spreading" people to form networks instead of "selling" products and providing services. What is the result? Without customer satisfaction and loyalty, without products and repeated consumption used by every household, people engaged in specific work can't make money. How can those teachers and senior managers earn money? Can there be any guarantee?
It is the same whether a country, a nation, an enterprise or an organization can stay together for a long time. Mencius said more than 2,000 years ago that "if you get the Tao, you will help more, but if you lose it, you will not help." Without Tao, how can we get income and security?
Look at the rise of great powers, read the history of enterprises in China (by Wu Xiaobo), and turn over the history of China for thousands of years. Maybe you will have a clearer understanding of the direct selling you are engaged in.
Illegal pyramid selling will disintegrate the network. What about legitimate direct selling companies?
If everyone is like the above, even if they start to build a large network and have a certain performance and income, consumers will be dissatisfied, sales staff will be unhappy, sales staff will be unhappy, performance will shrink rapidly, performance of superior leaders will decline, and superior leaders will also collapse, and finally the whole marketing system will collapse. There are many such examples in the history of direct selling for decades, and there are also many examples of marketing teams of legitimate direct selling companies.
What is the success rate of direct selling?
Many people talk about the average income and turnover rate of the traditional direct selling industry, which seems to add insult to injury. As Professor Lang Xianping said, "superstitious numbers", a basic concept in financial analysis is "substance is greater than form". You should join a direct selling company. With a certain card, you become a practitioner? According to the employment mode of general direct selling companies, at least you should be willing to spend time learning knowledge related to industries, companies and products, and be willing to share and promote them. This is the basic work of the direct selling industry. If the amount of learning and sharing is standardized, such as how many class hours to study and how many working hours to work, the success rate and yield will be multiplied several times. If we measure the operation method and maturity again, the number will double again.
What is the reason for the success of direct selling?
In fact, legitimate direct selling companies and their products are unlikely to have problems, but the direct selling model-low threshold intervention, but high returns. It is equivalent to the emergence of entrepreneurs from a wide range of people. To put it simply, direct selling can basically be engaged by anyone who meets the national requirements, but institutionally, if a certain turnover is reached, the income can be higher than other industries. So, something very interesting happened. There are several ways to solve this problem:
1, they have the quality of success. As long as the original talents are transformed into the ability of the direct selling industry, they can succeed. Such people can not only succeed, but also make great achievements in direct sales.
2, itself does not have the quality of the first person, but introduces such people to engage in direct sales. From the operation mode of direct selling, it is also a successful way. However, success achieved by relying on others often has limitations.
3, basically do not have the quality of success, but with the help and training of the first person, it has the quality of success in the world.
There are all three kinds of people in the direct selling company. A healthy direct selling company is often a pyramid structure. The first kind of people can't be many, because these people have less motivation to do direct sales. There are many people in the second type, and the third type has the most people. Direct selling is a cooperative undertaking. The first type of people spend time and energy to train the second and third types of people, thus forming the orderly development of the direct selling industry. Therefore, direct selling is education plus marketing, and marketing is not selling goods, but providing products and services that consumers need; Education is not brainwashing, but turning a successful person into a successful person.
What are you doing? Direct selling or pyramid selling? Maybe my article will enlighten you to understand this problem more clearly.