Look at the difference between the three MLM direct selling and micro business

One, from the point of view of legality

What is direct selling?

Direct selling is to cut out the intermediate links, directly from the manufacturer to get goods, directly facing the consumer to share the good products and business philosophy. 2005, the State Council specifically promulgated the "Regulations on the Administration of Direct Selling", from the direct selling enterprises and direct sellers engaged in direct selling activities are subject to legal protection and constraints.

What is a pyramid scheme?

The pyramid scheme is a model that has a high entry fee, no substantial or equivalent products, and obtains huge profits through the development of downlines. At the same time that direct selling was moving toward legalization, the State Council simultaneously promulgated the Regulations on the Prohibition of MLM in 2005, which explicitly prohibited pyramid selling and intensified the crackdown on pyramid selling.

What is a micro business?

Microbusiness, as a new model in the Internet era, has no special legal protection, but also does not belong to the illegal industry, wandering in the gray zone, also accompanied by certain legal risks.

Two, from the product point of view

Direct selling: quality products, no need to hoard

From the enterprise to apply for a direct selling license conditions is not difficult to see, where the state issued a direct selling license of the enterprise has a strong scientific research, production strength, and has an independent technical team and factories, can independently research and development of products. The direct sellers do not need to hoard, all the products are directly from the manufacturer to reach the hands of consumers, neither business risk, but also to ensure the quality and safety of the products.

Marketing: no product or no equivalent product

Marketing organizations are under the guise of a product to continue to develop downline, the only source of bonus remuneration is the number of heads. Even if you buy a product, you have to pay a fee, commit to a minimum spend, or how much you have to buy in order to get the product, so the ultimate goal is to make a huge profit.

Microbusiness: quality is doubtful, a large number of hoarding

Microbusiness is not like direct sales have a special business license, any individual, team, small business can develop micro business model, so the quality of the product varies, and through the WeChat channel sales, consumer rights are relatively difficult. For micro business operators, if not a large number of stockpiling, can not carry out normal sales, and all levels of agents of the product price is not the same, easy to cause management chaos.

Three, from the composition of the view

Direct selling: consumers into operators

Participation in the direct selling business is first of all the users of direct selling products, because of the feeling of the quality of the product will form the initiative to consume, so that consumers into operators, their own boss, their own participation in the cause of the operation, not only because of the good products to become a direct selling company loyal customers, but also because of a good cause, the company will also become a direct selling company loyal customers, the company will also become a direct selling company. The company has been able to create a wealth pipeline for itself because of its good business.

Marketing: the continuous development of downline, pull head

Whatever marketing is under the banner of "legitimate business" "state support", with unrealistic language and non-existent products distort the facts, confuse the public, and instill the concept of improper wealth. Inculcating the idea of getting rich in an improper way. No matter how the brainwashing approach changes, there is only one purpose: to keep pulling heads.

Microbusiness: high-risk multi-level distribution model

Early last year, WeChat banned three-level distribution, which means that some of the micro-business distribution model has been cut, and the development of micro-businesses is either closer to the traditional sales model, or in the grasp of the transformation and upgrading.

The facts prove that: pyramid schemes are illegal, microbusinesses are not illegal, and direct selling is legal and legitimate.