What does MLM mean?

MLM is an illegal act in which the organizer uses the number of developers as the performance calculation reward through the development of personnel/offline, or requires the developed personnel to pay a certain fee to obtain the qualification to join. The essence of pyramid selling is Ponzi scheme, and illegal pyramid selling activities are completely prohibited in China.

First, the characteristics of pyramid selling

1. Entry fee: Usually, you need to buy goods or pay fees to get the qualification to join, and make profits through illegal means after joining.

2. Pulling people's heads: Developing offline is the most fundamental feature of MLM. Basically, all pyramid schemes are inseparable from paying remuneration according to the number of people who develop.

3. Payment method: The traditional sales performance is not used as the assessment, but the number of developers is used as the performance assessment.

Second, the new pyramid scheme

Traditional pyramid schemes usually take large classes to teach and restrict personal freedom. At present, there are many new forms of pyramid selling in China, mainly the following:

1, franchise chain mode: participants are required to pay to obtain franchise qualifications, and then get rebates through the development of offline.

2. Join in e-commerce: register an e-commerce company, and then engage in network marketing in the form of network and network marketing.

3. Venture capital model: Many young people set foot in it on the grounds of obtaining venture capital.

4. Free rebate mode: to attract people to participate in MLM activities without spending money on rebates.

5. Micro-business MLM: In the mode of selling courses, people can get paid by pulling them in to attend classes, which is essentially the process of developing subordinates.

Third, what should I do if I encounter pyramid schemes?

1. Remember the address and wait for the alarm.

2. Find the right time to escape when you go out.

3. Find opportunities to escape.

4. Actively seek help from the external environment.

5. Cheat the trust of MLM personnel.