At present, most MLM companies have been repackaged, confusing legal direct selling with illegal MLM business model 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.
There are essential differences between direct selling and pyramid selling:
1, direct selling: take goods directly from manufacturers and sell them directly to consumers.
MLM: Registration fee is necessary.
2. Direct selling: set up your own shop, order goods directly from the company and sell them to customers at one time.
MLM: You need to develop offline. It is necessary to constantly find collaborators to induce others to double their income under the guise of forming a team.
3. Direct selling: revenue is determined according to the quantity of products sold.
MLM: According to the number of people below and their business performance, you can decide how much return you have.
4. Direct selling: You buy one-yuan goods with 1 yuan.
MLM: Actually, to put it bluntly, you gave him 1 yuan, and he said he taught you how to earn 50 yuan. As a result, you give him 1 yuan, and he tells you to find ten more idiots like you.
Therefore, to understand these differences, it is necessary to clarify whether the sales model of Shengshikang and Health Management Company belongs to direct selling or pyramid selling.
You can also check the list of legitimate direct selling companies on the government website.
The list of direct selling enterprises approved by the Ministry of Commerce can be found in the direct selling industry management information system of the Ministry of Commerce.
The website address is:/login.html.
Please pay attention to identifying suffixes. Gov.cn, a government website, don't log on to phishing websites.