MLM refers to the way that organizers or managers develop personnel, calculate and pay remuneration to the developed personnel according to the number of directly or indirectly developed personnel or sales performance, or require the developed personnel to obtain the qualification for joining on the condition of paying a certain fee. Its purpose is to seek illegal interests, disrupt economic order and affect social stability. 1April 2, 9981day, China * * * announced a total ban on pyramid selling (notice on banning MLM business activities). The important basis for determining pyramid selling is whether its bonus system has pyramid distribution.
harm
Harmfulness of pyramid selling: disturbing social and economic order and affecting social stability and unity; It has triggered social riots such as the rise of social criminal cases and the death of family members. The essence of MLM is that it does not create social value by illegally transferring and gathering finance offline, which is the essential difference between MLM and normal marketing. MLM is not an act of the state, nor can it be an act of the state. Although it has brought local economy and promoted consumption, its own organizational behavior has caused irreparable harm to most participants. It violates the normal life and activities of human beings. The Socialist People's Republic of Albania supported pyramid selling, which led to the collapse of the country and social unrest, and even almost broke out in civil war.
characteristic
The characteristics of pyramid selling: the ultimate rights and interests of most consumers or investors are not guaranteed. Let's compare MLM with normal marketing one by one, so that everyone can distinguish it.
Consumer behavior and business behavior are vague, and pyramid sellers use some "tricks". In the early stage, they publicized investment and business behavior, and later you became a consumer unconsciously; Or promote consumer behavior, and later let you become an investor; Even citing vague concepts such as "consumption capitalization" makes you lost between investment and consumption, which brings many difficulties to your legal rights protection (note: consumer behavior and investment business behavior are two different legal concepts, and the applicable laws are: Consumer Rights Protection Law and Contract Law).
In the name of business activities such as selling goods, providing services and investing in special projects, the organization and leaders require participants to obtain the qualification to join by paying fees or purchasing goods, services and investments.
In the regulations prohibiting MLM, the concept of hierarchical relationship is repeatedly mentioned. The formation of hierarchical relations according to certain laws is only a phenomenon in many pyramid schemes. Only if it is related to illegal possession of other people's property can it be suspected of pyramid schemes. For example, village-level community stores have five or six grades of goods, and they are sold normally. Therefore, the object of pyramid selling infringement is complex, and pyramid selling is often accompanied by tax evasion and price gouging, which infringes on many social relations and legal objects; There must be two main object elements: 1. Fraud (infringement of citizens' property ownership); 2. Disturbing social management order and economic order.
nature
MLM mainly sells itself, buys the company's products by itself, and extends this sales method to offline. In fact, offline sales are mainly aimed at their relatives and friends. This sales model is detrimental to the interests of salesmen, and will not bring any remuneration to offline salesmen, but will cause losses, and you will not learn any sales technical experience in the process of selling to yourself. Only by selling products to others will skills be needed. Therefore, this method is not a normal job at all, but a trick to harm others and make huge profits for a few top internet companies.
The internal management of pyramid selling is paramilitary management, which has been highly organized and violent. MLM personnel violently resist the law or gather people to attack state organs. In Shaanxi, Beijing and other places, MLM personnel have attacked public security organs.
The essential difference between pyramid selling and direct selling is that direct selling belongs to commercial activities and business scope; Moreover, pyramid selling is a financial activity, not a fraud.
Is the Internet of Things digital currency a pyramid scheme to watch the news? The central bank is now developing digital currency. It can be seen that digital currency is also the future trend.
Is China Internet of Things digital currency a pyramid scheme? It can be said that because there are many similarities, others can give reasons if they have to say it.
At the same time, the following acts belong to pyramid schemes:
First, you need to pay the entrance fee.
Second, we must develop the downline. It is necessary to constantly find collaborators to induce others to double their income under the guise of forming a team.
Third, according to the number of people below and the business performance of these people, decide how much return you have.
the State Council
Prohibition of MLM regulations
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) The organizer or business operator requires the developed personnel to develop other personnel to join, thus forming an online relationship, and calculating and paying online rewards according to the sales performance of offline personnel to seek illegal benefits.
There is a great possibility. What is the key to this money-making plan? MLM makes money from offline participation. Every time you invest a sum of money, do you have shares in your family? Digital currency is a prop, which is different from the real digital currency.
Excuse me, are China Internet of Things and digital currency MLM?
Yes, wasn't it just reported on the news the other day? Bitcoin is the first one, and many of the things that have been done well before are pyramid schemes, especially MBI, which also involves many stars.
What is the real Internet of Things? It is not difficult to find out whether the new scam of China Internet of Things and digital currency MLM is MLM. Meet the following conditions is pyramid schemes.
For the purpose of developing personnel, calculating and paying remuneration based on the number of personnel directly or indirectly developed by the developed personnel or the sales performance, or requiring the developed personnel to obtain the qualification to join on the condition of paying a certain fee, so as to seek illegal interests, disrupt the economic order and affect social stability, is a pyramid scheme.
Internet of Things digital currency Policy The Internet of Things is the general name of an industry, such as automobile rice industry.
If someone says that this is the original stock currency or something, it can basically be confirmed as pyramid schemes.
What is the so-called digital currency in digital currency of the Internet of Things? That is, what you see is not real money like RMB. What you see is a few numbers. You can buy East or not, so it's called digital currency.