In an interview with reporters, some experts expressed the same view: Although there is often a thin line between multi-level direct selling and illegal pyramid selling, which is difficult to manage, multi-level direct selling is not the chief culprit causing market chaos. On the contrary, direct selling without multi-level genes will no longer be direct selling, and many direct selling enterprises and distributors will turn to "grey management" under this mandatory regulation, causing greater confusion.
At this point, we can't accuse people in the industry of "grandstanding" because they have been dealing with the market for a long time and have a better understanding of what direct selling companies and distributors are doing and thinking. At the same time, we should also objectively see that the biggest difference between direct selling and other marketing methods is that direct sellers are consumers and operators, and their daily work needs to build teams in addition to selling goods. Their income is their hard work, not "something for nothing". Moreover, under the formal multi-layer direct selling system, products will not increase prices layer by layer, and the mainstream propaganda of formal direct selling companies is also "no discount, no price reduction".
Yes, "direct selling" without multi-level genes will no longer be "direct selling", which means that as long as it is pyramid selling, it must be illegal, and there is no possibility of legal pyramid selling, which means there is no legal "direct selling". Literally, how can "multi-level" be "direct sales"? It's obviously a pyramid scheme. Now there are only formal MLM companies and informal MLM companies.
Some people are afraid that these "direct sellers" will go underground and cause more confusion, which is ridiculous. 1997 One size fits all is an example.
Of course, it takes effort to build a team, but once several senior sales directors have completed it, they can "get something for nothing" and even inherit it according to Amway's reward terms.
I think it is necessary to give a legal explanation to the terms "direct selling" and "pyramid selling". And it's hard. I suggest that we can't simply use the formula of direct selling = pyramid selling, although they are a word in English. Be sure to distinguish the difference between the two first. I think direct selling is a single-level direct selling, and whether there are stores is not the key. MLM must be multi-level, even if there are shops and the quality of products is guaranteed, it cannot change its nature.
As for the so-called "regular" MLM company like Amway, the product price will not be increased layer by layer. It's simple, but the calculation method is different. It has always claimed that the bonuses of marketers at all levels are issued by the head office, not drawn from offline. If there is no performance when going offline, will the head office send it down? It's just that the calculation method is different. The fundamental principle is to contribute most of the profits offline to online.
Government: Don't want to legislate?
When a reporter interviewed an industry expert and threw out the view that "the government doesn't want to legislate on direct selling at all", the reporter's hand shook, and immediately, it was simply regarded as a complaint of the industry. Because, since February 2004, the relevant departments of China's direct selling legislation have gone abroad for investigation and investigation, and held executive and ministerial meetings. Many ministerial figures have publicly stated many times that direct selling legislation is proceeding step by step. As far as the reporter knows, there are more than a dozen draft laws. It is really biased to say that the government does not want to legislate. However, this complaint reflects the industry's dissatisfaction with the repeated postponement of the date of the law and the inconsistent attitude from various government departments.
How the government legislates is indeed a matter that needs great wisdom to complete. However, although the government has been discussing it for many days, when I communicated with the leaders of direct selling enterprises, direct selling personnel and industrial and commercial administrative departments, I found that they all agreed that the government did not fully understand the fundamental problems of pyramid selling. This can be seen from the contents of several pre-legislative meetings reported by the media. All kinds of information, even completely opposite information. It also allows us to see the game of various interest groups. Overthrow again and again, modify again and again. Even Amway once celebrated ahead of schedule and finally had to take it back. In fact, the most important question is whether pyramid schemes are allowed. If there is no multi-level, it is not pyramid selling, as if legislation is meaningless. If allowed, wouldn't pyramid schemes be legalized?
I don't think pyramid selling can be legalized under the current social, economic and ideological environment in China. Amway is the largest distributor in China, and we must start from it. Domestic-funded enterprises and foreign-funded enterprises are not allowed to conduct pyramid schemes or disguised pyramid schemes.
Why is Amway a pyramid-like pyramid scheme?
Amway admits that it is a pyramid structure, but it also says that other pyramid structures also exist in other organizations, such as the military, such as actual companies. Aren't they also the general manager, deputy manager, department manager and staff?
What it says seems reasonable, but if you think about it carefully, you can find the fundamental difference between the two pyramid structures. That is, the pyramid structure of general economic organizations is stable, and the number of people at the bottom will not change much. If we give this structure a task, it must be a layered task. However, the pyramid of Amway is infinitely extended. If given a task, it will find as many subordinates as possible to decompose the task, instead of relying on the existing structure to divide and complete the task. Of course, Amway's pyramid is reasonable because it is changeable. If the upper level has no performance, then even if the line pulls down good performance, there is still no income.
However, when the reporter told them that some draft laws were submitted for deliberation, for example, "It will be illegal pyramid schemes for organizers to recruit people in their business activities and develop other people to join the network through recruiting people, and it will be illegal pyramid schemes for participants to calculate and extract remuneration or give other economic benefits by developing people to directly or indirectly sell goods." From their point of view, if the law is really like this, then the direct selling industry in China will be almost wiped out. But when reporters continued to ask them how they would respond, most people chose silence, and a few people still said, "What should we do?" .
It can be seen that the formation of teams and collective compensation are the main sources of income for direct sellers in China. Once the lifeline is cut off, they either choose to give up completely or they can only operate behind the scenes. And we have reason to believe that the number of people who choose the latter will be very large in a period of time.
Shops are not a means to legalize pyramid schemes.
Amway also admits that the "direct selling" in China market is different from that in foreign countries, that is, the mode of stores and salesmen. In fact, you should either legalize your own shop. This store doesn't play the role of direct selling, but only does exhibition and logistics. According to my on-the-spot investigation, the number of retail investors on the spot is less than 1%, and the turnover is even more pitiful, hardly counting. It can be said that Amway was forced to open a shop in 1997, but it was a mistake. On the one hand, Amway, which owns stores, has been "legalized"; on the other hand, Amway has developed rapidly with the help of these legal strongholds.
At that time, the government asked MLM to open a shop because it was afraid that something would happen to MLM and it would not be as into thin air as some leather bag companies. But in fact, the government did not consider the most serious consequences of pyramid schemes.
There is another way for Amway's "direct sellers" to evade the law, that is, every "direct seller" has the qualification of an independent self-employed household and signs a contract with Amway as an agent, rather than obtaining the qualification to sell Amway products as an employee or a natural person. This seemingly redundant action is to make Amway avoid taking on more responsibilities as much as possible. Individual industrial and commercial households can develop teams and build pyramids through curves. At least100,000 such individual vendors are marked as dealing in daily necessities. They don't have any shops, most of them are at home. This is the real sales terminal of Amway!
"Direct Selling" and "Theory of Three Represents"
Our Party has always been a faithful representative of the development requirements of advanced productive forces in China, the orientation of advanced culture in China and the fundamental interests of the overwhelming majority of people in China. However, the development direction of Amway is totally different from ours, or even totally deviated from it, which has a very bad influence on China.
Advanced culture. The culture of "direct selling" does not represent the development direction of China's advanced culture, is incompatible with China's traditional culture, and does not represent the advanced culture of the United States. Although it claims to be the abbreviation of American way. Its values are not accepted by the American people. It is the most inflammatory, on the one hand, it taps the potential of "evil" in human nature, on the other hand, it gives full play to "hypocrisy". People become completely driven by interests, but they also deceive themselves with beautiful ideas of "environmental protection", "health" and "enjoyment".
"Direct selling" has the worst corrosive effect on China people's ideology, and has far-reaching influence. At present, in the social transition period of China's rapid economic development, the old ideological system has collapsed and the new ideological system has not yet been constructed. "Direct selling" culture will affect generations! This is a rare bad influence in other developed countries. This is harmful to the creation of a harmonious society. The fanatical quasi-religious ideology has taken on the nature of an "economic cult". As I have discussed before, Amway's "original sin" cannot be changed through legal norms. And that's what I care about most.
Advanced productive forces. "Direct selling" is a non-mainstream that plays an auxiliary role in the economic society. No matter in which country, no matter when in the future. The more developed countries are, the less this phenomenon is. This is by no means Amway's last wave of economic boasting. It is by no means the most advanced business model. What Amway has done since 1997 has never complied with the existing laws and regulations. Before the legislation, various laws and regulations promulgated by the industrial and commercial departments were violated all the time, but Amway was also trying to put gold on its face, sponsor the Olympic Games, go to CCTV, hold a long-distance running fitness competition and sponsor out-of-school children. The evil Amway company tries to hide its eyes and ears through these absolutely public welfare activities.
The fundamental interests of the overwhelming majority of the people. MLM, the so-called "direct selling", has always been to let the overwhelming majority at the bottom pay the bill as cannon fodder, so that the "diamonds" and "emeralds" at the top of the pyramid can get something for nothing. It can't be simply said that they get something for nothing, but they still have to work hard to get people, especially in the early days. ) its economic plunder of the general public is clear at a glance. It cannot represent the fundamental interests of the broad masses of people.
1, Shenzhen Wen Bin Trading Co., Ltd. (also known as "Shenzhen Wen Bin") 2, Wuhan Xintian Health Care Products Co., Ltd. (also known as "Wuhan Xintian") 3, Luxas Hong Kong Branch 4, Guangzhou Jansen Cosmetics Co., Ltd. 5, France Ollman Cosmetics Company 6, Shanghai Yimei Biotechnology Co., Ltd. 7, Germany Ace 88 MLM Agency 8, Jiangsu Fangguan Technology Industry Co., Ltd. 9, Letifi MLM.
12, Beijing Hengyuan Ye Wei E-commerce Consultant Co., Ltd. 13, Deli (Hualiang) Company [also known as Deli (Group) Company, Global Profit Planning Company, Global Profit Planning Alliance, American Profit, etc.] 14, Heilongjiang Hegang "Lin" MLM Organization. International Tea Chain Co., Ltd. 17, Guangzhou Yourong International Trading Co., Ltd. MLM Product Catalogue: 1, Shengshi Lin Health Products 2, Butterfly Belle Cosmetics 3, French Ollman Cosmetics 4, Japanese Aibo Myna Cosmetics 5, emu oil