MLM refers to the illegal behavior that organizers or operators develop personnel to obtain wealth by calculating and paying remuneration to the developed personnel based on the number of personnel directly or indirectly developed or sales performance, or requiring the developed personnel to obtain the qualification to join on the condition of paying a certain fee.

Direct Selling, according to the definition of the World Direct Selling Alliance, refers to the direct selling of goods and services by manufacturers, and the direct sellers bypass the traditional wholesalers or retail channels and directly receive orders from customers. Direct selling refers to the distribution mode in which direct selling enterprises recruit direct sellers, and the direct sellers directly sell products to the final consumers (hereinafter referred to as consumers) outside the fixed business premises.

1. Entry fee

Whether it is necessary to subscribe for goods or pay fees to obtain the qualification to join or develop the qualification of others to join, and seek illegal benefits;

2. To attract people

Do you need to develop others to become your downline, and pay the developed personnel according to the number of their direct or indirect rolling development, so as to seek illegal benefits?

3. Payment method

Whether to calculate the remuneration based on the sales performance of the directly or indirectly developed personnel and seek illegal benefits.

if you meet the above characteristics, you may be suspected of pyramid schemes.