The difference between pyramid selling and direct selling
1, the profit model is different.
Direct selling is profitable by high-quality products and high-quality sales methods. Simply put, it is to find ways to sell good products to more people, and pyramid schemes are very different. In addition to selling some products with unrealistic prices, pyramid schemes will also charge new people an occupation fee.
The high occupancy fee is also a part of the high-level income source, so we can simply judge whether it is direct selling or pyramid selling from whether the occupancy fee is unreasonable or whether the product is of high quality.
2. The target audience is different.
Some large pyramid schemes are generally more formal, generally do not receive group fees, the quality of the products sold is ok (but the price is still higher than the product value), and various management systems are relatively formal, which is generally difficult to find, but the defects can still be seen.
3. The product after-sales guarantee is different.
Regardless of pyramid selling or direct selling, we take goods directly from a certain enterprise and then sell them. Direct selling companies will be responsible for their products. If the goods can't be sold because of expiration or personal problems of the agent, the enterprise will recycle the products according to the situation, and pyramid selling is irresponsible, that is, it is yours to make money after selling, and it is also yours to lose money after selling. Once the product is issued by the enterprise, the enterprise is no longer responsible for the product.
4, the difference between whether the product is in circulation.
Illegal pyramid selling enterprises are just a kind of "crowdfunding" game, and the high admission fee plus low-quality and high-priced products that cannot be circulated in the market will not last long.
Their sales method is to let all the entry-level sales representatives subscribe for products, but these products are not in circulation in the market, but only as samples or promotional materials for the next salesperson.
In the end, all the salespeople have one hand, and the products are not circulated or sold in the market at all. Moreover, the income of these illegal pyramid schemes organizers mainly comes from the entry fees paid by participants or the fees paid in disguised form by subscribing for goods. Because the products are not in circulation, most of the organizers use part of the fees paid by the late participants to pay the remuneration of the first batch of participants in order to maintain their operations.
However, direct selling companies are completely opposite. On the one hand, the products of enterprises require good quality; On the other hand, products sell well in the market. For direct selling enterprises, the quality of products is the fundamental reason to determine the sales volume of products, because the distribution channel of products is from manufacturers to customers through marketing representatives, with no other links in between and few advertisements.
5. Is there a return guarantee system?
It is understood that once the illegal pyramid selling products are sold, they cannot be returned, or they try their best to set obstacles for repeat customers. This is completely different in direct selling enterprises.
All regular direct selling enterprises will provide customers with perfect purchase protection. For example, a general customer can get a cash refund of 100% if he promises to return goods with sales value within 7 days after purchase. For high-quality customers, some direct selling companies also promise to return products that have been used or have no sales value within 10 days (at least half of the remaining amount), and get 50% cash refund or 50% equivalent purchase amount.
Extended data:
Jilin Luomei International Biotechnology Co., Ltd. (hereinafter referred to as "Luomei International"), once suspected of "illegal direct selling", finally obtained the direct selling license in June 20 13, becoming the 33rd licensed enterprise recognized by the Ministry of Commerce. Some victims told China Net reporter that under the cloak of "direct selling", illegal direct selling activities of Luomei International are rampant, and problems such as "charging high membership fees", "exaggerating product promotion" and "illegal cross-regional operation" are widespread.
Luomei International has a registered capital of 80 million yuan. Before obtaining the direct selling license issued by the Ministry of Commerce, Luomei International had been operating as a quasi-direct selling enterprise, and "Luomei International Yangshengtang" was its main carrier, which was once very popular. However, according to the information of Liaoning Provincial Administration for Industry and Commerce, dozens of individual enterprises of Luomei International Yangshengtang have stopped operating, and their business licenses have been cancelled or revoked.
In 20 13, Luomei International was granted a direct selling license, and three direct selling products 1 were approved, namely, Huitianli brand Ganoderma lucidum mycelium granules, Huitianli brand Ganoderma lucidum mycelium capsules and Huitianli brand Huiyuan capsules, which were approved for direct selling in 22 districts of 4 cities in Jilin Province.
However, in order to expand the market network coverage, Luomei International not only sells directly in limited areas, but also develops direct stores in many places in China. Luomei International has appeared in Guangdong, Jiangsu and other places. An employee of Luomei International Suzhou Direct Store told China. The direct store takes attracting members and selling fungal polysaccharide health care products as its main sources of income, and its business is very hot.
According to the relevant provisions of the Regulations on the Administration of Direct Selling, it is forbidden to engage in direct selling without approval or beyond the scope of direct selling products. If the circumstances are serious, in addition to the confiscation of direct selling products and illegal income, a fine of not less than 300,000 but not more than 500,000 shall be imposed. Merro international's cross-regional operation obviously violates relevant regulations.
Direct selling _ Baidu Encyclopedia
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