After the promulgation of the two regulations, direct selling has become a hot topic of who says it is reasonable and who says it is unreasonable. There are as many opinions as there are comments. Only a hundred schools of thought contend can a hundred flowers blossom. From studying the discussion report of the World Direct Selling Alliance and the relevant laws and regulations in China, we can trace back to the source and carefully analyze a direct selling.
Direct selling, literally means direct selling.
The production unit omits the intermediate channel and directly conducts sales activities on its own. This is what ordinary people understand as factory direct sales. In this sense, the specialty stores established by manufacturers themselves should also be direct selling systems.
After the promulgation of MLM Prohibition Regulations and Direct Selling Management Regulations, "direct selling" has become a special term stipulated by Chinese laws. Direct selling here is no longer a factory direct selling behavior understood by ordinary people, but a business model.
The publication of the two regulations has made the direct selling industry lively. Some announced their withdrawal, and some entered the direct selling industry with high profile and claimed to win the license. Others think that direct selling has cancer and will not wait and see for the time being. Some claim not to do direct sales, but to do e-commerce, franchise and join chains. Some simply ignore it, and the underground traffic follows the feeling. Product orientation, interactive marketing, consumption getting rich, the fifth and sixth wave systems, and all kinds of publicity make people feel at a loss. Some people even assert that direct selling is the development trend, and e-commerce has replaced direct selling. All this is because the MLM Prohibition Ordinance clearly stipulates that it is illegal to prohibit the calculation of team salary and multi-level bonus!
How to understand the true meaning of direct selling? How to use the direct selling mode? How do enterprises exploit the market by direct selling mode? How do direct sellers know about direct selling schemes and choose companies? How do consumers understand the concept of direct selling and choose products? These problems are the key to the development of direct selling industry.
By studying the discussion report of the World Direct Selling Alliance and the legal documents related to direct selling in China, we can deeply understand the connotation of direct selling, as well as the position and attitude of the World Direct Selling Alliance and the China government on this marketing model. In order to make better use of the direct selling mode.
1. Understanding of direct selling
(1). The definition of direct selling in the Discussion Report of World Direct Selling Alliance and the Contract Law of World Direct Distributors.
Discussion report of World Direct Selling Alliance;
Direct selling is to sell products and services directly to consumers, and it is a dynamic, dynamic and rapidly expanding sales channel.
Definition of world distributor contract law;
Direct selling refers to "marketing services or selling consumer goods directly outside consumers' homes, workplaces and other stores, and the direct sellers usually explain or demonstrate the products or services in detail on the spot".
(2) The explanation of direct selling in the discussion report of the World Direct Selling Alliance.
The best definition of direct selling is to sell products and services directly to consumers in a face-to-face manner, usually in the home, workplace or other places different from permanent retail stores of consumers or others. Direct selling is usually explained or demonstrated by independent direct sellers; These salespeople are often called direct sellers.
(3) The definition of direct selling in China's Regulations on Direct Selling Management.
"Regulations on the Administration of Direct Selling" Article 3 The term "direct selling" as mentioned in these Regulations refers to the distribution mode in which direct selling enterprises recruit direct sellers, who directly sell products to final consumers (hereinafter referred to as consumers) outside the fixed business premises.
The term "direct selling enterprise" as mentioned in these Regulations refers to an enterprise that sells products by direct selling with approval in accordance with the provisions of these Regulations.
The term "direct seller" as mentioned in these Regulations refers to the person who sells products directly to consumers outside the fixed business premises.
(4) The interpretation of direct selling in China's Regulations on Direct Selling Management.
According to the literal understanding of the regulations, direct selling should have three meanings:
Enterprises that have obtained direct selling licenses in accordance with the provisions of these regulations;
By recruiting direct sellers;
Use direct sellers to sell products directly to final consumers outside the fixed business premises.
In today's China, without these three items, it is not direct selling.
The purpose of defining any noun concept is to deepen people's knowledge and understanding of the concept, so that people can use the concept more accurately and operate the concept more effectively.
"World Direct Selling Alliance" and "World Direct Distributor Contract Law" only express the behavior phenomenon of direct selling, and the main body is individual direct sellers, without restricting the source of products and the relationship between direct sellers and direct selling companies. The relationship between the status of direct selling companies and direct sellers is not explained. This is very important, because can a direct seller serve multiple manufacturers and sellers? Can direct selling companies prohibit direct sellers from selling products of other companies part-time? This is an important question.
The World Direct Selling Alliance pays more attention to the protection and support of individual rights and interests, and does not object to direct sellers taking care of multiple products of multiple companies. This is completely different from the propaganda and unilateral regulations of direct selling companies that do not allow direct sellers to work part-time in other companies. At the same time, the World Direct Selling Alliance spoke highly of the direct selling model, highly summarized the characteristics and advantages of the direct selling model, and showed its support attitude.
It can be considered that the direct selling defined by the World Direct Selling Alliance is only a distribution method, which directly sells products and services to end consumers. This is a dynamic, dynamic and rapidly expanding sales channel. China's "Regulations on the Administration of Direct Selling" recognizes direct selling as a way of distribution, but there are conditions attached. Direct selling companies, direct sellers, consumers, direct selling products and direct selling behaviors are clearly defined. The purpose of the definition is easy to manage and constrain. But too many constraints are not conducive to free development.
Can it be inferred that the government's position focuses on restraining management rather than vigorously supporting development? This is quite different from the bold experiment of letting students touch the stones to pay tuition fees.
2. The characteristics of direct selling
(1). International general direct selling mode
I. Direct mail order
Direct sellers send mail directly to pre-selected potential customers, including "winged salesmen" such as letters, leaflets and folding advertisements. (for example, DHC company in Japan)
Two. catalog marketing
The seller mails the catalogue according to the selected customer list, or the catalogue is available for customers to obtain at any time.
Three. telemarketing
Telemarketing refers to selling directly to consumers by telephone. (Insurance companies often use it in large quantities)
Four. Television marketing
Television marketing refers to the use of television to sell products directly to consumers.
Verb (abbreviation for verb) E-mail order
There are two forms of electronic mail order: one is through the video information system, consumers can operate a small terminal and order goods displayed on the TV screen with intercom closed-circuit television. Another form is that consumers can use personal computers to contact the central database station and compare various products for sale. They can use a printer to input the order and account number into the computer.
6. Vending machine sales and Internet sales
There are vending machines and internet sales, which make the sales form more vague and the characteristics of no shop more obvious.
7. One-to-one direct sales
There is no store operation mode, that is, the dealer carries product samples and related materials, and communicates the product characteristics one-on-one through word-of-mouth publicity, and there are no other intermediate links. Transactions have no fixed place and are generally conducted in a family atmosphere. The roles of consumers and distributors can change with the individual's understanding of products. Dealers win customers with thoughtful and meticulous professional services, and customers (consumers) can also recommend their favorite products to other consumers.
(2) Description of one-to-one direct selling by the World Direct Selling Alliance.
Independent direct sellers sell products and services on behalf of themselves or their affiliated direct selling companies through personal sales relationships. In some areas, they are generally called independent underwriters, that is, these independent salespeople are not employees of companies that sell products, but independent industrialists who run their own businesses. These independent direct sellers have the opportunity to profit from their business, and they must also bear the risks brought by their business. Direct sellers sell a wide range of products, including: cosmetics, personal care products; Laundry and personal cleaning products; Vacuum cleaner, household appliances; Household goods; Household cleaning products; Food and nutritional supplements; Toys, books, educational supplies; Clothes, jewelry, fashion accessories, etc.
Generally speaking, these products are sold in the form of group (reunion) or individual (one-on-one) explanation. The way of reunion is that the host invites a group of guests to their home or other places, and then the direct seller explains the products in front of this group of people. Other direct sellers will choose a convenient time for consumers to visit their homes in person, so that consumers can listen to product descriptions and demonstrations in a comfortable environment.
No matter for individuals who are eager to make money and set up their own businesses, or for consumers who like to shop outside shopping centers and department stores, or for the consumer goods market, direct selling has provided great benefits. For those who want to make money from flexible income to supplement their family income, or those who can't have part-time or full-time jobs due to responsibilities or environmental relations, direct selling provides opportunities other than traditional jobs. There are also many people who choose to devote themselves to independent direct selling full-time because of their success and satisfaction in the direct selling industry.
The cost of running a personal direct selling business is usually very low. Generally speaking, as long as you buy an affordable business start-up information package, you can take the first step, and you hardly need any inventory or other cash investment. Unlike joining a chain store or making other commercial investments, you usually need to invest a lot of money, and investors must bear huge loss risks. The convenience and services provided by direct selling have benefited consumers, including people demonstrating and explaining products in person, delivering goods to your door, and providing product satisfaction guarantee. In addition, direct selling also provides another sales channel for companies that have innovative or special products that traditional retailers don't have, or put these products on the shelves of retail stores because they can't afford huge advertising and promotion expenses. Direct selling strengthens the retail channel structure in the economic system and provides consumers with a convenient source of high-quality products.
Both the World Alliance and the National Direct Selling Association realize that the freedom of starting a business also means that enterprises are responsible not only for individuals, but also for others and even the whole industry.
This way of interpersonal word-of-mouth communication is the direct selling defined by the direct selling industry. The most popular and vivid explanation should be "MLM". Sell it by hand and make a profit by selling it. How to spread and sell is a detailed process, but it is inseparable from the essential connotation of pyramid selling, which is to sell retail to end consumers without stores, provide quality services, form word of mouth, satisfaction and loyalty, and expand market share.
The direct selling subject defined by the World Direct Selling Alliance is an individual. Support individual entrepreneurship and encourage enterprises to support individual free entrepreneurship. The responsibility of enterprises is to support the freedom of entrepreneurship. Entrepreneurship here essentially refers to job opportunities, providing opportunities other than traditional jobs. It is quite different from the entrepreneurship advocated by China. For those companies that have innovative or special products that traditional retailers don't have, or can't afford huge advertising and promotion expenses to put them on the shelves in retail stores, direct selling also provides another sales channel. It is the individual who helps the enterprise, and the enterprise only provides the product rules and reward system, which complement each other and benefit each other. Therefore, enterprises support individuals to start their own businesses freely, and also help and support enterprises.
Moreover, it is mentioned here that "independent direct sellers have the opportunity to profit from their business, but they must also bear the risks brought by their business". How big is the risk? How big is it? It is a problem that needs to be studied and taken seriously. In the past, direct selling companies did not advertise. It is risk-free and requires no investment. As long as you join in and keep copying, you will succeed.
(3). Summary:
The first feature: direct selling is a personal entrepreneurial model, independent underwriter behavior, personal agent retail, and low investment cost requirements.
The second feature: direct sellers sell and promote products or services face to face.
The third feature: the products of direct selling companies can be varied, but they must be of high quality, value for money and have a return system.
The fourth feature: the income of direct sellers comes from two parts: one is the accumulated remuneration for selling products directly to the final consumers; The second is to teach or train the direct sellers directly or indirectly recommended by the company. After selling the products directly to the final consumers through the direct sellers directly or indirectly recommended by the company, the company will give a certain bonus! Therefore, it is very necessary to train direct sales personnel.
Fifth feature: Direct sellers borrow all facilities provided by direct selling companies (shops, computer management systems, training meetings, etc.). ) or other companies' training, and establish a permanent customer consumption group between the company and itself.
The sixth feature: the relationship with direct selling companies is mutual assistance, which strengthens the retail channel structure and promotes sales development.
Compared with traditional sales, direct selling is characterized by no direct retail of stores and person-to-person behavior. A marketing method in which direct sellers directly sell or promote products or goods or services to the final consumers through face-to-face explanations. The convenience and service provided by the direct selling model benefit consumers. For those companies that have innovative or special products that traditional retailers don't have, or can't afford the huge advertising and promotion expenses and can't put them on the shelves in retail stores, direct selling also provides another sales channel. Direct selling strengthens the retail channel structure in the economic system and provides consumers with a convenient source of high-quality products. More importantly, the direct selling model provides individuals with entrepreneurial opportunities. It is a personal entrepreneurial model with humanity, morality, honesty and equality as the mirror, and it is a more humanized commodity distribution and retail model.
It can be summarized as follows: small investment, free entrepreneurship, no need to open stores, retail accounts for the market, and with the help of the company, we can act as agents for good products. Honesty is the foundation, and word-of-mouth spreads influence. Establish service groups and integrate into large-scale systems. Personal small network, interconnected value-added. Training to find help, the team has a division of labor. Self-reliance for survival and mutual development.
3. About the past propaganda of direct selling, and the views on the past propaganda.
(1). Publicity of individual entrepreneurial opportunities
No investment (or less investment, less investment is not investment), you can act as an agent for a variety of products, you can cooperate with world-famous big companies, you can get selfless help from leaders, you can get support and study in the team, and realize your personal ideals. This is the propaganda point of the direct selling company.
It is true that direct selling is an opportunity for individuals to start their own businesses. It can really represent the products of large companies with less investment, make profits through retail, and get a share of the profits sold by others by developing sales networks. But there are the following problems: the difficulty and success rate of sales.
According to the original idea of direct selling, reducing intermediate links, saving costs and reducing costs, improving cost performance, enhancing competitiveness, is conducive to sales. However, after the operation of the direct selling company, the price of the product has not decreased, but it is higher than other models, and it is not a little higher. Even the price and value of the product are seriously deviated, and the product becomes a symbol, a dispensable symbol.
Without specific sales behavior, there is no basis for doing business. Rats can deceive people, and if the products of direct selling companies deviate too much from the value in price, it is also deceptive! It is a marginal game in the mouse club, and it is a mouse club with products. Therefore, the opportunity to start a business is inseparable from products, sales and direct sales, which is the essential feature of individual retail to end consumers. Selling stones for nothing can't be legal or normal speculation.
Also, although you can represent the goods of large companies, is it suitable for personal sales ability? There is still investment in direct selling entrepreneurship, and the loss of opportunity cost can not be ignored. It is not comprehensive and correct to say that mere publicity means little or no investment. Furthermore, direct sellers help enterprises to strengthen the role of retail channel structure in the economic system, which is the main foundation and resource for individual entrepreneurship. Without this, why should enterprises cooperate with individuals? Even if an individual starts a business, there are problems of suitability and risks of success or failure. Industries with too low success rate must make more preparations and can't afford to fail. If they want to succeed, they may not succeed. Not being prepared for failure will affect their long-term development in the future. The World Direct Distributor Contract Law has repeatedly stressed that it is not allowed to exaggerate the income propaganda, with the aim of restraining direct selling companies and not misleading them by using false propaganda. The fundamental difference between personal employment opportunities and making a fortune leads to qualitative change.
(2) Expression of pipeline and well drilling
Comparing the traditional industry to lifting water, direct selling means repairing pipelines and digging wells. It will become more and more difficult to carry water in traditional industries, and finally there will be no water to eat if it is not carried. Direct selling means repairing pipelines and digging wells. Bring your own water source, and when the pipeline is repaired, water will flow out of the pipeline continuously. Work hard for a while and enjoy life. This is an attractive statement that direct selling companies are generally proud of.
As a story with attractive prospects, pipeline is actually a false proposition! Repairing pipes and lifting water are just different ways of working. What exactly is a pipeline? What is the basis for ensuring a steady stream of water? Who controls the valves in the pipeline? As the premise of the story, it is assumed that water can be used freely and inexhaustible. But even if the hypothesis is established, the following conditions still need to be met.
First, before the pipeline is repaired, it is necessary to ensure that the income from water lifting can meet the needs of personal life.
The second is to ensure that part of the income from water lifting can be used to invest in the cost of pipeline construction.
Third, to ensure that whether it is to lift water or tap water, we must first have the ability to pay, not to mention water or repair pipelines, and ensure water use.
Four, how to ensure that the self-repairing pipeline can quickly overcome the competition of other ways to build pipelines?
Fifth, it is impossible for everyone to repair the pipeline by themselves. How to prove that self-repairing pipeline is an opportunity for everyone?
6. What is the standard for pipeline repair? When repairing the pipeline, it is carried out at the same time as lifting water, but most of the water must be given to others first. Isn't the pipeline more difficult to build?
Comparing direct selling and pyramid selling to repairing pipelines and digging wells is a one-sided and single exaggeration of the role of bonus system. Even if it is paid for the team to share the benefits of some offline work, the premise is that there must be actual sales behavior. There must be a certain amount of sales and profits. Only when the logistics from the company to the consumer and the capital flow from the consumer to the company are smooth can a small part of the benefits of the direct sellers be distributed. Otherwise, the pipeline is a dry pipe, and the water well is a dry well without source. And all this depends on the success and sales of retail. Therefore, it is blind to take it for granted to repair pipelines without analyzing the water source situation. A blind man riding a blind horse needs a reminder. If they add fuel to the fire and mislead blind people to ride blind horses, it is ulterior motives. In addition, the contract between the direct seller and the direct selling company is renewed once a year, and the valve of the pipeline is controlled by others. Whose pipe is it? There is also the sword of expulsion, which is in danger of depriving the pipeline of ownership at any time. In any industry, whether it is resignation or dismissal, the labor insurance fee is always an individual right and is protected by the labor law. How to ensure the expected benefits of the pipeline? According to the contract law of world distributors, distributors withdraw from direct selling organizations, and even the data package must be returned, just to protect the rights and interests of distributors. These basic common sense have never been publicized by direct selling companies. Without transparency, how can it be fair and just? The serious asymmetry of information is one of the important reasons why the direct selling trap cannot be seen through.
(3) Views on changing identity
Only by consuming by themselves can pyramid sellers understand the advantages and disadvantages of products, be qualified to share and be persuasive in propaganda. The roles of consumers and distributors should change with personal understanding of products, which is the basis of direct selling model and the essential feature of this business model.
Through the change of consumers' dual identity, they are both consumers and operators, unite consumers into their own businesses, use their own goods, love their own goods, care about their own businesses, sell their own goods and publicize their own goods, thus stabilizing some loyal customers and consumer groups, forming a stable market, driving and guiding more consumers and expanding market share. This is the purpose for enterprises to adopt the direct selling mode, which is beneficial to the development of enterprises. But the key and premise is that the price-performance ratio of products must be reasonable and superior, because this directly represents the golden point of good quality and low price. Only in this way can consumers feel psychologically satisfied, improve their loyalty, share and sell well.
Different propaganda has different purposes. The propaganda of individual entrepreneurship and pipeline and well digging is to mobilize people to join the direct selling team; Changing the interpretation of identity is conducive to improving the loyalty to direct selling enterprises. In the past, the propaganda of direct selling by direct selling enterprises was one-sided and exaggerated, divorced from the traditional mature production, sales and management theories, and overemphasized the goals and visions, but rarely publicized the role of direct sellers in helping enterprises strengthen the retail channel structure in the economic system. Put the main function of providing convenience to consumers with high-quality products in a secondary position. While emphasizing individual entrepreneurship, we overemphasize success, deliberately cover up risks and cover up problems in sales.
In fact, you can judge and decide your choice according to the following ideas:
As a consumer, are you willing to use this product? Do you think it is appropriate to buy your own products? Excellent cost performance? If you don't meet the requirements, you must invest, and don't do to others what you don't want.
As a salesman, is it easy to sell? Are others satisfied? Do you also want to promote this product? If it doesn't conform, everyone will resent it, but persistence is stubbornness.
If you change your identity, does the salary match the job? Is it worth changing your identity? If you don't meet the requirements, you won't look back if you hit the south wall, and you won't die if you reach the Yellow River. Your spirit is commendable. It is a waste of time to continue. You can do better. Why not? The mismatch between salary and work wastes a person's talent and loses a person's opportunity cost. This mismatch will not last long and can only be transitional.
It is worth pointing out that the identity of the direct seller is a legal person or a natural person, or an agent (the same as an insurance agent)?
As a consumer, he should be a natural person, as an independent industrialist who runs his own business, he should be a legal person, but when analyzing the relationship with direct selling companies, he looks like an agent. They all look the same, but they are all different. This is also the legal ambiguity of direct selling.
Step 4 get to know MLM
(1). The definition of MLM in the discussion report of the World Direct Selling Alliance
Multi level marketing system is a very important marketing method in the direct selling industry, which is also called "network marketing", "structural marketing" or "multi-level direct selling". This system has been running for many years, and it has been proved to be a successful and effective way to sell products and services directly to consumers, and make independent salespeople or distributors profit.
(2) The explanation of MLM by the World Direct Selling Alliance.
There are various organizational structures and bonus systems in the direct selling industry, and multi-level pyramid selling is just one of them. The best definition of multi-level pyramid selling is direct selling bonus system.
There are two basic ways for direct sellers to get bonuses:
First, direct sellers can get retail dividends by selling products and services to consumers;
Second, they can earn commissions from direct offline sales or purchases, and they can also earn commissions from the total sales of organizations directly offline.
(This explanation of the World Direct Selling Alliance is the recognition of training labor, which can be used as a theoretical basis for team rewards and remuneration according to work. )
Therefore, multi-level pyramid selling provides opportunities for direct sellers to start their own businesses, not only selling products and services to consumers, but also developing and training offline organizations to engage in direct selling. Multi-level pyramid selling, like all forms of direct selling, has great substantial benefits to the market. Multi-level pyramid selling can provide opportunities for countless people who are neglected in the job market or whose abilities have not been fully developed, so that they can learn basic business and management skills in this simple and low-cost way. In fact, anyone can increase their income through flexible direct sales. In addition, companies that sell unique or innovative products or services can also cut into the market through direct sales without paying huge advertising media fees or competing for shelf space in retail stores. Multi level marketing is a very popular retail method, which is booming all over the world.
In the legal multi-level pyramid selling system, direct sellers can only earn bonuses by selling products and services to the final consumers. Direct sellers who buy products for personal or family use are also one of the final consumers.
The roles of consumers and distributors can change with the individual's understanding of products, which is the basis of MLM. Only when MLM users use the products themselves can they understand the advantages and disadvantages of the products, be qualified to share them and be convincing in publicity. The world direct selling alliance supports the behavior of selling first and then consuming, which is in line with the cultural point of view of not doing what you want.
According to the definition of "direct selling refers to selling products and services directly to consumers" by the World Direct Selling Alliance, pyramid selling is first retail, and then the process of transforming the identity of consumers into operators, but at least in this process, retail is the first. Therefore, the essence of pyramid selling is "marketing". Products are sold, knowledge, business opportunities and methods are transmitted, and products are carriers. Without products and substantive services, I'm afraid fraud is not far away. The purpose of selling is to spread, the purpose of spreading is to sell more, and the purpose of reselling is to benefit, but it should be based on buying for consumption and on consumer satisfaction. Sales without consumer support can never be smooth, but it is just to transfer the goods to the storage address.
Direct sellers should not get bonuses just by introducing others to join. Regrettably, some organizations that intend to cheat attract members under the guise of multi-level pyramid schemes, and members often have to invest a lot of money to join.
Legal multi-level pyramid selling has four characteristics that are easy to identify:
1. The joining fee of multi-level MLM companies is usually extremely low. Generally speaking, participants only need to purchase one business kit, sales aid or demonstration kit. Direct selling companies usually provide information to new entrants in a non-profit way. New entrants can enjoy a period of hesitation, during which they can reconsider their decision. If they decide to quit, they can ask for a refund of the membership fee.
(Now the countermeasures of illegal organizations have changed, and they also adopt low entry fees. The strategy of recruiting soldiers is more hidden and difficult to identify. )
2. Multi-level MLM companies strongly oppose hoarding too many products. Direct sellers can return unused and saleable products to the company and get a refund of not less than 90% of the direct selling price.
The setting of bonus system and the greed for quick success and instant benefit have greatly tempted people to hoard goods. Without supervision, direct selling companies actually acquiesced, damaging the interests of direct selling personnel. )
3. Multi-level MLM companies focus on selling products to consumers. They are famous for their excellent product quality, so they are widely respected. At the same time, they provide consumers with satisfaction guarantee or hesitation. Dissatisfied consumers can return the products to the company and get a reasonable refund or replace other products.
In the past, it is a fact that direct selling companies encouraged people to join the sales network and become direct sellers. As for how to make products satisfy consumers and make sales easier, direct selling companies rarely consider it. )
Multi-level MLM companies will avoid exaggerating the income of direct sellers. Any explanation related to income must be based on facts.
In the past, it is a fact that direct selling companies encouraged trainers to brag about their income, and stimulated and lured more people to join the organization. )
This report aims to explain the significance and advantages of multi-level pyramid selling.
(3) The definition of MLM in China's MLM Prohibition Ordinance.
The term "pyramid selling" as mentioned in these Regulations refers to the behavior that organizers or business developers calculate and pay remuneration to the developed personnel on the basis of the number of personnel or sales performance 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, seek illegal interests, disrupt economic order and affect social stability.
(4) The explanation of MLM in China's MLM Prohibition Ordinance.
Article 7 The following acts belong to pyramid selling:
(1) The organizer or operator, through the development of personnel, requires the developed personnel to develop other personnel to join, and calculates and pays remuneration (including material rewards and other economic benefits, the same below) to the developed personnel based on the number of personnel directly or indirectly developed, so as to seek illegal benefits;
(2) The organizer or business operator, through the development personnel, requires the developed personnel to pay the fees or pay the fees in disguised form by subscribing for commodities, etc. , so as to obtain the qualification to join or develop other personnel to join and seek illegal interests;
(3) Organizers or business operators, through the development of personnel, require the developed personnel to develop other personnel to join, forming a subordinate relationship, and calculating and paying online rewards based on the sales performance of the following lines to seek illegal benefits.
If you can see the difference, that's good. If you are interested, you can communicate/
For more information, please refer to Resources.