Traditional Culture Encyclopedia - Traditional festivals - What is the difference between traditional sales model, direct sales model and illegal pyramid selling?
What is the difference between traditional sales model, direct sales model and illegal pyramid selling?
The traditional sales model refers to the circulation of goods through channels and finally reach consumers. Its remarkable feature is that in order to ensure the smooth circulation, each circulation link will increase the price layer by layer, which is what we often call the channel model; Direct selling mode means that manufacturers reach consumers directly without intermediate circulation. Relatively speaking, commodity prices are generally low. Illegal pyramid selling mode refers to pyramid selling mode, which is an illegal profit-making mode, that is, in order to obtain more benefits for the upper pyramid, the lower pyramid will be developed through intermediate means. In fact, pyramid selling is legal in the United States, because there is no illegal business, but it is more common in China. The obvious feature of illegal pyramid selling is that there are no shops. Amway first carries out shop-style pyramid selling in China and becomes direct selling.
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