The definition of pyramid selling:
First of all, MLM generally collects membership fees in the form of shopping or funds. Secondly, MLM is carried out through the network structure between multiple online and offline personnel. Finally, MLM adopts the method of double payment, that is, the sales reward is not only from the profits of the goods themselves, but calculated according to the heads of the MLM personnel.
Judge whether a company's business behavior belongs to pyramid selling, and don't be disturbed by those complicated business models to think independently. At present, most MLM companies repackage and confuse the business models of direct selling and MLM to establish channels. Therefore, by correctly distinguishing between direct selling and pyramid selling, we can judge whether a company's business behavior belongs to pyramid selling.
Today, because all kinds of people walk in the market, there are standardized direct selling enterprises and illegal pyramid selling enterprises in the market, people usually can't distinguish correctly. According to my above criteria, you should judge for yourself whether the business model of the company you want to join now belongs to pyramid selling.
According to the Regulations on Prohibition of MLM, MLM refers to the way that organizers or operators develop personnel, calculate and pay remuneration to the developed personnel based on the number of personnel directly or indirectly developed by them or require the developed personnel to obtain the qualification to join on the condition of paying a certain fee. Its purpose is to seek illegal interests, disrupt economic order and affect social stability. 1April 2, 9981day, the government of China announced a total ban on pyramid selling (notice on banning MLM business activities).