At present, most MLM companies repackage and confuse the business models of direct selling and MLM to build channels. Therefore, by correctly distinguishing between direct selling and pyramid selling, we can judge whether a company's business behavior belongs to pyramid selling.
From the perspective of commercial distribution, direct selling is a distribution model, which has three characteristics:
1. has a clear target customer base,
Second, there are no intermediate sales links or as few intermediate links as possible.
Third, measurable sales effect.
Enterprises sell their own products, either through a layer-by-layer wholesale system, or directly send goods to supermarkets, or use salespeople to sell products directly. The last form is what we call direct selling, which is actually a sales behavior of the enterprise itself. Some people think that direct selling is a crime, and direct selling is not a sunshine cause. In fact, they are all incorrect. The crux of the problem is that they don't understand the concept of direct selling and the difference between direct selling and pyramid selling.
What's the difference between direct selling and illegal pyramid selling? Direct selling, first of all, refers to single-level direct selling, that is, enterprises find salesmen and then sell products. The second is multi-level direct sales, that is, the formation of a sales team, which is different from the pyramid scheme of pulling people's heads:
1. Multi-level direct selling is a kind of sales behavior. It sells the products of enterprises, with the goal of establishing a loyal customer system. Illegal pyramid selling is an act of attracting people to collect money, and sales are opportunities.
2. Multi-level direct selling is not allowed to have a high entry threshold; The first step of MLM tells you that there is a high entry threshold or equivalent high-priced products.
3. Multi-level direct marketing will promote the dialectical concept of labor union's harvest in education; In the education of illegal pyramid selling, it is emphasized that the operation is very simple, as long as it can attract people.
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. You should judge for yourself whether the business model of this company belongs to pyramid scheme according to my above criteria.
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.
Hope to adopt ~