First, the definition of pyramid selling
? MLM refers to the remuneration calculated and paid to the developed personnel by the organizer or operator according to the number of directly or indirectly developed personnel or sales performance.
? Or ask the developed personnel to obtain the qualification of joining on the condition of paying a certain fee, seek illegal interests, disrupt economic order and affect social stability.
Second, the characteristics of pyramid selling
1. Registration fee is required.
2. Need to develop downline. It is necessary to constantly find collaborators to induce others to double their income under the guise of forming a team.
3. According to the following number of people and their business performance, decide how much return you have.
Extended data:
? Legal judgment of pyramid selling: it is necessary to analyze the legal connotation of this behavior from a legal point of view. Those who meet the following conditions belong to pyramid schemes.
Article 7 of the MLM Prohibition Ordinance: The following acts are pyramid schemes:
? (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) Organizers or business operators require the developed personnel to pay or pay in disguised form by means of subscribing for commodities through the development personnel. , 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.
References:
Decree No.444 of the State Council, People's Republic of China-Prohibition of MLM Regulations