First, because pyramid selling is an industry that everyone can do, both officials and ordinary people all over the country were doing it at that time. At this time, it is very easy for those high-end government workers to use the rights endowed by their personality to coerce their cadres to buy pyramid schemes, which leads to the inability to complete the work entrusted by the party and the people wholeheartedly and blindly refuse corruption in the erosion of interests. For example, the pyramid scheme in Hunan is a true portrayal.
Second, price increases at different levels. Because it has become a kind of hype in China, most people raise commodity prices to make money. A rocking machine of fitness equipment worth only 260 yuan, 1997, sold for 6700 yuan in Yining City, Xinjiang, which violated the law of value and infringed on the rights and interests of consumers.
Third, fakes appear. Because pyramid selling pays too much attention to the wealth in circulation, especially the high-end class uses some illegal manufacturers to produce counterfeit products, which infringes on the interests of large and medium-sized enterprises and consumers and disrupts the normal market procedures.
Fourth, MLM has performance pressure, circular investment and zero performance. Because pyramid selling is very strange to Chinese people, most people engage in it irrationally and rashly under the psychological control of poverty and poverty, but when they go in, they find that they have to keep buying products to keep their performance from returning to zero, only to find that they need 600,000 yuan to be the top spot of the "Crown Ambassador"! Borrow it from a friend? We must admit that the friends you made when you were poor were not very rich. What should we do? Children have to go to school, parents need money when they are sick, and besides, you can't sew your mouth with a needle and thread. At this time, the need of survival forces you to have some excessive behaviors: kidnapping, extortion, robbery, murder, arson, bank robbery and many other social hidden dangers are exposed, which is the last thing the country wants to see.
Fifth, the operation pattern of pyramid selling is pyramid-shaped. Because most people in China are poor and want to change their mentality, they urgently need to change their views and economic situation. Only when they went in, did they find the existing circular investment and performance pressure, and found that 600,000 yuan squeezed into the spire. Therefore, the "28 distribution system" naturally formed in this pyramid. The so-called "28 distribution system" means that 80% people will continue to consume products and support 20%. To earn money, 20% are rich and powerful people, with 600 thousand. 80% people lose money or just keep money. It is impossible to make a lot of money! Besides, pyramid selling is only hereditary, that is to say, I made money, my son made money, my son made money, and after his grandson made money, my son made money again. So pyramid selling is a paradise for the rich and a hell for the poor.
Sixth, MLM uses the 250 rule. It's like a bus with only 40 seats. The first person to get on the bus at the front door sells tickets, and the back door is welded to death. When the seats were full, people began to stand in the aisle. If you get on the bus again, a terrible phenomenon will be eliminated. Rich people will pick up people who have no money and throw them out the window. Moreover, the carrying capacity and load-carrying capacity of this kind of car are limited, (the original 5-ton car pulls 50 tons) which will eventually lead to car crash and death.
Seventh, pyramid selling is an irresponsible and daunting industry. As long as you sell your product to others, it doesn't matter where other people's products go, even if you throw it away and sell it to someone. Secondly, MLM is defined as a business based on geometric growth and interpersonal communication. . As far as its definition is concerned, pyramid selling is a commercial activity with no advertisements, no shops and single products. As far as the development trend of things is concerned, it has already been introduced.