Is Quanjian a pyramid scheme or a direct sale? Are those products really effective on the human body?

Whether Quanjian is a pyramid scheme or a direct sale should be determined based on the specific business operation model.

Direct selling is a product distribution model, while MLM is a sales model. The essential difference lies in whether profits are made by selling goods or by developing downlines.

Direct selling is a distribution model, which is divided into single-level direct selling and multi-level direct selling. Single-level direct selling means that the company recruits salesmen to sell products directly to users; multi-level direct selling means forming sales groups one by one. Sell ??products to users. Direct selling has four major characteristics: there is a clear sales target customer group; there are no intermediate links and as few intermediate links as possible; the actual products sold have measurable sales effects; salespeople are paid according to the performance of the product sold.

MLM is to attract people, and it has three forms, namely: the organizer or operator, through developing personnel, requires the developed personnel to develop other personnel to join, and the developed personnel are given the number of direct or indirect development personnel. Calculate and pay remuneration (including material rewards and other economic benefits) as a basis; the organizer or operator, through development personnel, requires the developed personnel to pay fees or pay fees in disguised form by subscribing for goods, etc., to obtain the qualifications to join or develop other personnel to join ; The organizer or operator, through development personnel, requires the developed personnel to develop other personnel to join, form an upline and downline relationship, and calculate and pay upline remuneration based on the sales performance of the downline.

Regulations on the Prohibition of Pyramid Selling

Article 7 The following behaviors are pyramid schemes:

(1) The organizer or operator, through the development of personnel, requests the person to be Developing personnel to recruit other personnel to join, calculating and paying remuneration (including material rewards and other economic benefits, the same below) based on the number of personnel developed directly or indirectly on a rolling basis, and seeking illegal benefits;

< p>(2) The organizer or operator, through developing personnel, requires the developed personnel to pay fees or pay fees in disguised form by subscribing for goods, etc., to obtain the qualifications to join or develop other personnel to join, and to seek illegal benefits;

< p> (3) The organizer or operator, through development personnel, requires the developed personnel to develop other personnel to join, form an upline and downline relationship, and calculate and pay upline remuneration based on the sales performance of the downline, and seek illegal benefits.

"Direct Selling Management Regulations"

Article 3 The term "direct selling" as mentioned in these Regulations refers to the recruitment of direct sellers by direct selling enterprises, who directly sell to final consumers outside of fixed business premises. (hereinafter referred to as consumers) the distribution method of promoting products.

The term "direct selling enterprises" as mentioned in these Regulations refers to enterprises that are approved to sell products through direct selling in accordance with the provisions of these Regulations.

Direct sellers as mentioned in these Regulations refer to those who sell products directly to consumers outside of fixed business premises.