Some people say that Amway is direct selling, not pyramid selling. It seems that he really doesn't understand Amway.
Friend, do you know the current situation of direct selling and direct selling industry in China?
Direct selling originated in America and has a history of several decades. It is to let hard-working people use their spare time to share their feelings of using agency products with acquaintances around them, thus generating sales performance and drawing corresponding bonuses in proportion, so as to earn pocket money to supplement part-time opportunities at home. Today, in the United States, full-time direct selling practitioners are still very few, accounting for only 20-30%.
It is said that among the top 500 richest people in the United States, nearly 80% have an average age of around 30. They started with direct sales and finally succeeded. Another 20% of the rich are mostly elderly people over 60 years old. They spent their whole lives working hard in other different industries and achieved brilliant careers.
Direct selling is not mysterious, and its operating principle is simple: multiplication marketing. It was originally put forward by two students of Harvard University. One change, two changes, four changes, four changes, eight changes ... If it goes on indefinitely, the number will be huge. Used in business, the effect will be amazing.
The charm of direct selling lies in: from customers to business participants. With the passage of time, the number of people attracted to join will increase exponentially, and the sales generated will naturally increase exponentially accordingly. Of course, the income of employees has also doubled. The real charm of direct selling lies in the guarantee of bringing lifelong benefits to practitioners, and it is hereditary! Can be inherited by children and relatives as an inheritance.
The reason is clear: at the beginning, you developed the initial customers and established the market. No matter how long it takes and how big the market is, it all comes from your hard work and dedication. Therefore, as long as the market exists, you will always gain something. And if you are still running! This kind of harvest is also called "non-work income". It is brought by the sustainable marketing network you have established.
Direct selling enterprises and direct selling employees are cooperative. Enterprises can no longer consider the actual sales situation of products, and put manpower, material resources and financial resources into product research and development and production as much as possible. In order to ensure that direct selling agents are provided with products with advanced technology, excellent quality, high cost performance, marketable products and competitive advantages in the market. In order to maintain the long-term cooperation between the two and achieve a win-win situation!
Amway, Avon and other internationally renowned successful direct selling companies set a good example for direct selling.
Direct selling was also introduced to China by Avon and Amway.
Chinese mainland has implemented a closed policy for decades, and the people live in poverty. Soon after the reform and opening up, some people became rich first. In the 1990s, people who felt that they had not won the first pot of gold in primitive accumulation of capital regarded direct selling as the last chance to get rich at the end of the 20th century, and poured into the direct selling industry. They don't want to be inferior to others Once they invest, they go all out and dare to invest at all costs. They need opportunities very much and even dream of how to get rich overnight.
Some illegal organizations outside the country, "Rat Club", smelled the attractive atmosphere of the mainland, openly landed and carried out activities, deceiving many people who did not know the truth. They generally lost miserably, and some even lost all their money. Relatives turn against each other, friends turn against each other. It has a far-reaching impact on China's friendly society. The general public at a loss equates illegal pyramid selling with direct selling. It is generally believed that this is the direct selling industry! MLM has become synonymous with economic fraud in Chinese mainland! At that time, avoid it. People have reached the point where they turn pale at pyramid schemes.
China's market is far from mature, and the corresponding laws and regulations have not been formulated, so there is a legal gap. However, the government is most concerned about social stability and will never be soft on all factors that may lead to social stability and unity.
Thus, there was the "MLM ban" in April 1998!
Regular direct selling enterprises, including Amway and Avon, were banned, and no one was spared!
Although three months later, Amway was first approved by the government to resume business, it had to "cut its feet and fit its shoes" and transform into a "shop to hire salesmen" model.
Then, China applied to join the WTO. At the critical moment, the opening of direct selling has become a key issue. China government solemnly promises to the world: within three years after China's entry into WTO, it will legislate on direct selling!
At the same time, Amway, a representative leading direct selling enterprise, complied with the government's requirements and reorganized its distributors again.
The direct selling industry has no threshold, low starting point and uneven quality of employees. In Amway's marketing team, some high-level individuals violated the company's regulations, artificially manipulated their performance and hoarded goods in order to travel abroad, win prizes and expand their personal influence, encouraging subordinate departments to fight for quality in performance, resulting in a large backlog of goods. Then dump at a low price and maliciously destroy the market environment. Many people who agree with Amway products and understand the direct selling industry, soon after entering Amway, deeply realize that there is an unsustainable real situation in the direct selling industry: not many people adhere to the authentic direct selling model, share products and services and establish stable customers. Some people even become salesmen selling products to strangers. What's more, most Amway people who want to be truly market-oriented and operate rationally can't survive when the market is destroyed. * * * creates an illusory and grandiose atmosphere. With the strength of Amway, they ask all departments to believe what they say and operate in a wrong mode that deviates from the purpose of direct selling. Otherwise, it is indifferent! If you actively cooperate, you will gradually get into trouble and find it difficult to extricate yourself. There are only two endings: either insist on asking for money, make money at a loss, and the family economy goes from bad to worse. Either give up the once cherished idealistic Amway career completely, and safety can help individuals get rid of poverty and build a sense of security. Most people leave by instinct and reason. Others want to stick to it, but they are too poor to make their own products. How do they support their daily expenses? Only go to work, do traditional business, and come back when you earn money. Others simply jump ship to other direct selling companies to seek a way out and development.
Imagine: Amway, which is the leader in the direct selling industry with strong strength, long operation time and excellent product quality, is still like this. What about other companies? Especially those small companies that have no strength, products and experience to win by playing institutional fantasy, how long can they live? What happens inside Amway is unavoidable for other companies. There will be more problems.
The real source of chaos in the direct selling industry is neither the system nor the legal environment. The root cause lies in the people who run direct sales! They hold the idea and mentality that the poor get rich overnight, greedy, fraudulent and eager for quick success ... They lack the spirit of self-discipline and have no intention of self-discipline, thus destroying the environment on which they live. It brings unstable factors to society and creates new hidden dangers.
China government supports and hopes that the direct selling industry will flourish. But today, the two laws and regulations promulgated by the government have brought multi-level team compensation into the illegal category, which is really helpless. It is the inevitable result that direct selling practitioners ignore industry norms. Make your own bitter wine, you can only swallow it yourself. This is called self-inflicted!
Where is the outlet for direct selling?
There is only one way out for direct selling: standardization, self-discipline and rationality!