MLM and direct sales: what's the difference?

21 April 1998, China announced that it will no longer allow any form of MLM business activities, has approved the registration at the latest by 31 October for a change or cancellation procedures. Thus, from 1990, Sino-American joint venture Avon co., Ltd. will start marketing introduction, MLM road in China go 9 years finally came to an end. My Government also started "to pass". 2005 China's ban of MLM and direct sales Ordinance officially launched, our "fight to" work to a whole new level.

Today, this newspaper and provincial Bureau jointly launched "' beat pass ' 10th anniversary series report" as publicity 10 years of success in combating MLM, let more people know the hazards, and direct marketing pyramid schemes and multilevel marketing difference, avoid mistakes entering the pyramid scheme.

"Many people selling health products have said that they are direct marketing, MLM and direct sales: what's the difference?" in the daily work of the Department of Commerce and industry in fair trade often receive similar phone. 17, provincial trade staff indicated that there are six main characteristics of the pyramid.

The main characteristics of a pyramid scheme: operators through the development of personnel, organizational networks engaged in non-store business activities, participants from the following line between online marketing performance in remuneration; participants pay entry fees or through subscriptions merchandise (including services) and pay the entry fee in disguise, made to join the development, introduction or qualifications of a person to become a member and get return; first participants from the development of the next line members get paid fees, and the amount of the proceeds from its accession to the proceeds in the order decided; organizers proceeds mainly from participants pay the entry fee or to purchase merchandise, and other ways to pay the costs of disguise; organizers take advantage of the participants of part of the costs paid to the participants of the maintenance operation; other people through the development, organization network or to high returns as bait to attract workers in disguised pyramid schemes.

The staff of the provincial administration of industry and commerce, direct marketing has the following characteristics: the implementation of this distribution method is only the body of a direct marketing firm and its recruitment of salesmen, in a fixed place of business, the object can only be the final consumers, that is in direct marketing and ultimate consumers does not exist in other marketing media, in addition, the product must be a tangible, physical-chemical products, not including the virtual products and provide services.