Recognize and respond to direct sales _1_ by fdjerue7eeu


									Recognize and respond to direct sales (1)
   MLM Definition:
   1, the organizers of pyramid schemes is the development of staff or managers, was
developed by persons directly or indirectly the development of its personnel based on
sales volume or the calculation and payment of remuneration, or require the
development of personnel to pay a fee to join, for the conditions qualifications, etc. to
obtain illegal benefits, disrupt the economic order, that affect social stability.
   2, pyramid schemes deviate from the direct sales should follow the right track, do
not pay attention to sales, to head the main assembly, the product is a
"dummy", hidden behind a cheat money for the purpose of
   3, usually by direct sales organizations, students, colleagues, fellow villagers,
friends, relatives posed! For each other are more understanding, its failure to prevent
mental, are most vulnerable to the object they cheat. MLM mainly rely on the
constant development of "offline", to maintain its normal
operation to do and enrich the "pyramid" above
"network head. "
   MLM Type:
   1,         the          banner          of        "recruitment"
"recruitment", "job" in the name, lured
students, farmers, laid-off workers and other groups.
   2, falsely claimed that "the national pilot schemes,"
"West", "State, local governments secretly
supporting"          the     fraud,    the     so-called       "capital
operations",                                "franchising"
"franchising" "chain sale", etc., to high
returns as bait, to lure.
   3, under a legal company, business jacket, to sell goods as a cover to high rebates,
high returns for the bait, through the development of franchisees, agents and other
forms of conduct.
   4, using the Internet. With the development and popularization, some MLM
organizations have the banner of "e" "Network
Marketing"                "Network               Marketing"
"Network Agent" "e-learning training" in
the name, in order to get rich quick trick for the bait, and the need to pay entry fees ,
online registration for the so-called members or agents, the development of offline.
   MLM tricks
   1, IPO
   In the stock market at an issue price to the public issue of corporate stock. For the
IPO scam, as long as ordinary investors have some basic common sense, you can see
through. First of all, the state management of the financial industry is very strict
examination and approval of financial derivatives has strict procedures. Can be said
that in China, all individuals to raise funds for business open is illegal. These
fund-raising activities, regardless of whether the fraudulent motive, no essential
difference, because it has not been ratified, not state control, there is no asset-backed,
whenever a problem can only be affected by the loss of individual investors.
Meanwhile, a semi-private transfer market in the IPO are not protected by law, the
legitimate flow of current shares can only be the secondary market, that the stock
   2, overseas funds
   Issued by a foreign investment trust fund. Way through the overseas funds to invest,
can share the global investment opportunities and profits, but also to diversify the risk,
professional management, the purpose of tax saving and asset transfer. With the
wealth effect of domestic investment funds continued to heat up, recently, a number of
criminals and criminal organizations on the Internet site to sell to investors, the
non-existent "overseas fund", these lawless elements and
criminal organizations of cases of "high return"
"Linear rebate" in order to confuse people, when the money
accumulated to a certain extent, the criminal suspect or shut down websites, the
money was emptied, away. At present, the China Securities Regulatory Commission
has not approved any offshore funds sold in China, the so-called "offshore
fund" if something goes wrong, will not be "Securities
Act" to protect investors funds are difficult to obtain security guarantees.
Trading in securities investment funds, through the relevant prospectus or notice
expressly banks, securities companies and other qualified institutions have
consignment and fund direct Centre.
   3, consumer rebate
   Receive a retirement benefit that is to buy compliance. As long as customers buy or
purchase a certain amount of time, you can get rebates or gifts. It includes consumer
rebates and dealer accumulated total sales of consumer rebates. For example, when
the amount reached 10 million yuan to purchase rebates 5% of the time. When the
purchase of 10 commodities, the free gifts a commodity, when the consumer for more
than three times the price of such a refund. Is essentially a promotional tool, but direct
sales organizations use this model as soon as possible to attract funds, will challenge a
significant increase rebate amounts, and sometimes even Gaoyu product sell the
product itself, value, and when after adequate resources to absorb management will
certainly contribute disappear. Consumer rebate must be to resume the basis of a
reasonable profit, if the value found in rebates will have to be careful or cautious too,
especially not the well-known companies, products, brands, consumers took out a lot
of money who need their real purpose is to funds rather than sales driven, then largely
   4, managed forest
   Customer money, helping grow the company, management and protection, sales
woods. Endorsement of a famous movie star of "managed
forest" of 100 million Lin Wood, swept away by 1.68 billion yuan from the
hands of the masses. Lin hit a million awful big pyramid, so the country more than
20,000 people had been deceived, most of them citizens of Beijing. Police
investigations revealed that 100 million county in Henan Lin Group handled nearly
15,000 acres of forest land in forest warrants, but in fact half of the forest trees have
died; and they bought a place in Sichuan, 18,000 acres of forest land, forest warrant
has not been achieved ; and other woodlands, the address on the warrant in
accordance with forest, and some actual location was actually a lake, and some
woodland planting in 2023, the trees next to the weeds is not as high. According to
China's current forestry laws and regulations, the number of trees felled
each year, type, etc., the state has a plan, all parts of the corresponding indicators.
"Concession, even if the billion-lin woods all grew up, and if there is no
index, which also prohibited the cutting of the forest." Investment to buy
trees on forest land can not be converted into cash, that money can naturally not to
buy or investors hands.
   5, ant farming
   And       "managed          forest"        similar,     called   ants,
"commission culture" model - to pay a minimum payment of
ant species of 10,000 yuan, farmers can be at home, ant farming, investment in 14
months after, the company recovered a good ant farming, farmers receive rebates
3250 yuan, the investment return rate as high as five per cent of Thirty points.
"The real goal is not ants, but ant to pay the deposit, after joining to
support families with mortgage payments to pay first to join the support families to
keep more families fraudulently joined" to 拆东墙补西墙 going the way .
Such operations are vulnerable to non-benign enough money to pay rebates, at which
time the company will naturally invest in problem solving so that the drain.
   6, "E"
   MLM organizations to e-commerce, online shopping, online direct marketing,
network marketing, network agents, learning, training name, use outside the server,
set up Internet sites to get rich quickly as bait, luring innocent people pay the entry fee
by bank transfer , register online agent for the development of the so-called downline
members to do, and direct the use of electronic means of payment, bonuses in MLM
activities. E-commerce is not a pyramid scheme, but a business tool, but the use of
electronic commerce engaged in illegal activities has become pyramid schemes, a
very obvious feature is that here is not primarily sell merchandise, but require
registration fees or entry fees, agent fees.
   7, "franchise"
   Franchising and e-commerce as, if not illegal means the same as legitimate
business behavior. However, the coat of many under a legal status of franchise
companies have used illegal means to do direct sales practices. Often like to claim
that "zero risk or low risk and high profits," and advertising to
fight the special ring, put on the advertising piece of larger, multi-use, induction,
using the methods cited kitten you hook the bait fish, such as giving small gifts reduce
the initial fee, cash back, back decoration tricks to attract franchisees, and they tend to
do the critical point field, the local ordinary little fundamental reason is to avoid local
people may at any time to visit and inspect their own companies to more easily
understand the company the actual situation. If you really wish to join, they generally
will introduce you to their chain of stores to visit, but certainly prior arrangements and
benefits for branch and arrange for them to talk about things as much as possible.
   8, distance education
   A group of people using the Internet, in the "American Distance
Education Web site," a "simultaneous primary and secondary
education" "adult education", etc, to attract Internet
users registered members, per person registration fee 1350. Once registered, you want
to promote the two users for the company, the two users to continue to promote each
of the two registered users, and so down, when you left the number of users with the
right, Chief, Chief subscribers to 9 When you can get 70 dollars in prize money, about
600 yuan. Thereafter each additional 9 bonus you can get 70 dollars. On the surface,
registered users can indeed get rich quickly, but the commission was a necessary
condition for the development of the line is to balance the two. With the development
of the network down, it is impossible to ensure balanced two lines, the company will
be retained huge commissions, followed by a large number of Internet users as their
free labor. The most ironic is that virtually all buyers to purchase a
"distance learning" data, but the basic operation of the computer
and the input method, Win98 based tutorials can be any of these on-line access to free
textbooks. In addition, the website of the so-called "online
classroom" to teach is that almost everyone's "how to
apply for e-mail and the receipt of the letter, sent letters," "how
to download pictures," "how to copy and paste" and
other primary knowledge.
   9, Premium Sales
   Awards are usually sold direct sales trick: the participants must first purchase a
product, to obtain the award of qualifications and introduce others to buy
qualifications, while introducing others to receive referral bonus.
"Consumers" buy their own products more, or to introduce
others to buy more products, the awards and prizes the more. But the temptation for
some prizes sales, such as the Nanjing Pangrui international shopping on the prize
claim: shopping random selection lottery, pumping in cash back by 1 to 4; if not
drawn, according to the requirements of 10 companies pairs a day shopping to
continue pumping (up to more than 11 days), intermediate prize any day that is 3
times cash on cash return of the consumer, did not win, and the company to repay the
principal, and can be obtained free of charge for all products bought during this period.
This seems to be the world fall in your lap a good thing, but in fact the money is
returned after the first entrant entrants of interest, and entice more people to join.
   10, cross-industry alliance
   Cross-industry alliance claims to have global businesses, to provide all the basic
necessities in all areas of people's livelihood needs of the business alliance
together, in addition to consumers to provide a full range of quality services and value
of global deals of interest, but also for the business to create a world-wide business
processes and trading platform service. But in fact, its essence remains the pyramid
scheme: participants need to introduced to, and pay a certain fee to join, then you can
become a referee recommendation offline, and through the recommendation
   The difference between MLM and direct sales
   One difference: whether to sell their products as the basis for business operations.
   Whether relying on quality products, which is illegal MLM companies and a
fundamental difference between direct selling business, illegal pyramid schemes often
rely on the company's products are worthless, but the high price of the
product, the value of a set of only tens of dollars of cosmetics can be priced a few
hundred or a thousand dollars. The standard direct selling company's
products are value for money price.
   Difference between the two: there are no high entry fee.
   Illegal pyramid schemes usually have several distinctive features, first of all
whether the relatively high entrance fees. Illegal pyramid scheme companies will be
charged rigid entry fee, the amount ranging from 500 to 1000 yuan in the third. Of
course, some "smart" illegal direct sales companies, they have
other alternative forms, such as: the origin of entry-fee subscription products cost a
few hundred to a thousand dollars. It is understood that these illegal pyramid scheme
companies to pay entry fees by the participants or to subscribe to pay entry fees of
goods such as a disguised way to get to join, introduce or develop the qualifications of
others, and thus rewarded. Direct selling companies in the formal charges is not that
   The third difference: whether to set up outlets.
   China has experienced in 1998 after a comprehensive reorganization pyramid
pyramid schemes, many enterprises have foreign direct transformation. Since then,
"shop salesman employment" model has become the standard
mode of direct selling companies of major sales. This particular direct mode of
operation, so that attribution to the shop salesman, not only the direct relationship
with the company but also manageable. Illegal pyramid schemes often remain in the
development of enterprises, organizations engaged in non-store network operators
active. Even today, the availability of shops on the distinction between the Chinese
market is still illegal pyramid schemes and direct sales of a visual difference.
   The fourth distinction: whether the remuneration according to work.
   To pull the head to achieve access to the proceeds of illegal direct sales companies,
the structure of the sales staff is often rendered as "pyramid"
style, so the sales structure has led to whoever who came on the same time,
participants from the first paid by members of the development off the assembly line
entry fees for income, and the amount of revenue from its decision to join the order,
the consequence is always ahead of the first entrant comer. This can not be
transcendent does not exist in the direct sales company, regardless of the participants
in the direct selling businesses has added to the income shown as "more
   The difference 5: Are there any exit, return guarantee.
   It is understood that once the illegal pyramid selling company's products
can not be returned, or trying to return customers obstacles. This is completely
different in the direct selling businesses. Any formal business will provide customers
with direct purchases of complete protection. For example to the general commitment
to customers return within 7 days after the purchase still has a sales value of products,
will receive 100% cash refund. Some direct selling companies for quality customer
has committed to purchase within 10 days of use or non-refundable once the sales
value of products (the remaining amount of at least half) get 50% cash refund or 50%
equivalent purchases.
   Six different: whether the product can flow smoothly.
   Illegal pyramid scheme business, but a "gathering financing"
game, the high entry fee can not be in the market with low-quality high-value
products in circulation, not to maintain too long. Way is to take their sales to all sales
representatives have started subscription products, but these products are not
marketable, just pull into the next as a salesman's sample or promotional
materials. The final situation is that all sales staff a product not sold in the market or
circulation. And the organizers of these illegal pyramid scheme company's
revenue also comes from the major participants pay an entry fee or subscription to pay
a disguised form of goods such as cost, because the product does not flow, the
organizers, after most of the participants used to pay part of the cost paid by the first
participants pay to maintain the operation. But the direct marketing business is
completely opposite the one hand, good quality business product requirements, on the
other hand, sales of products in the market is also better. For direct sales businesses,
product quality is to determine whether or not the root causes of product sales,
distribution channels for products from the manufacturer by sales representatives to
customers in the hands of the middle no other links, and little advertising.
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