What kind of model is MLM?

The essence of pyramid selling is "Ponzi scheme", that is, the money of the latecomers is distributed to the income of the pioneers.

Types of pyramid schemes:

1, financial pyramid scheme

Features: Commitment to high returns and attracting investment. This behavior of absorbing funds is commonly known as ×× financial mutual aid community, ×× financial mutual aid platform, ×× financial mutual aid management, ×× charitable financial mutual aid platform, ×× financial mutual aid investment, ×× mutual aid community and ××× wealth mutual aid platform. This kind of behavior is concealed, and it is mostly controlled remotely by overseas personnel. Investment funds are often transferred through personal bank account online banking or through third-party payment platforms.

Nowadays, many financial frauds are under the guise of Internet finance. Recently, the China Banking Regulatory Commission, the Ministry of Industry and Information Technology, the People's Bank of China and the State Administration for Industry and Commerce issued an early warning. "This kind of operation mode violates the law of value, and capital operation is difficult to maintain for a long time. Once the capital chain breaks, investors will face serious losses. " At the same time, we need to be wary of financial pyramid schemes in the name of private equity, investment and shareholding, development channels and mutual gifts.

2.MLM network

Features: using the internet, under the banner of e-commerce or WeChat business, the cost is low, the development is fast, and people don't meet.

Some pyramid schemes engage in illegal pyramid schemes under the banner of e-commerce, and the publicity such as "online marketing", "online direct selling", "joining online stores", "recycling consumption", "full 100 return 100" and "making money through online entertainment" is very attractive.

At present, the reasons for the rapid development and spread of online pyramid schemes are as follows: First, it is very convenient for pyramid schemes to spread information through QQ groups, online games, YY voices, website forums and other tools; Second, the online pyramid scheme is called "starting a business at home and making money in pajamas", which is very encouraging; Third, online pyramid schemes are largely about attracting strangers. The cost of attracting people is relatively low, and there is no need to accompany them to eat and play, and there is no need to resign.

At the same time, the online pyramid scheme of "pulling people's heads" is more concealed, develops faster, has more deceived people, and has more deception methods, which can be described as "cheating money without meeting each other".

3. "Tourism" MLM

Features: With gimmicks such as "direct tour", "low-cost tour", "free travel" and "making money while traveling", we can attract people to join the club and pay fees by adding friends to the mobile phone WeChat. The virus spreads very fast.

"You only need to pay a small amount of membership fee, you can travel to the high-end for free", "Join us, you can travel around the world for free", "Others travel for money, and we can also make money by traveling", "Travel plus entrepreneurship" ...... At present, there are no travel companies in direct selling enterprises and quasi-direct selling enterprises, and at the same time, because "tourism" is not within the product scope of direct selling licenses, short-term travel companies cannot become legal direct selling.

4.MLM "National Project"

Features: under the banner of "state support", "government background", "cultural industry", "spiritual civilization", "good project industry alliance" and "agricultural development platform", the documents of state organs are forged, companies and enterprises are fictitious, and false propaganda is carried out under the guise of emerging industries.

They often engage in pyramid selling activities by means of chain sales, franchise chain, investment and development, capital operation, etc., or by means of inspection, tourism, joining, developing agents, and establishing workstations.

5. MLM of "fake direct selling enterprises"

Features: Directly using the name of a regular direct-operated enterprise to conduct other pyramid schemes, or using the name of a direct-operated enterprise to launch false publicity of WeChat official account and recruit sales personnel through the Internet. Some criminals use Taobao stores and WeChat stores to sell products that counterfeit the exclusive right to register trademarks of regular direct-operated enterprises.

Tiens, Sansheng, Perfect, Shang He, Luo Mai, Mary Kay, New Era, Keti, Kang Ding and other well-developed direct selling enterprises have all been counterfeited by criminals, and many direct selling enterprises invest a lot of time and energy in counterfeiting every year.

6. "Fake charity" pyramid scheme

Features: claiming to have an official background, deceiving good people under the guise of "charity assistance" and "love and mutual assistance", and in the name of "doing charity, building a harmonious home" and "helping poor students with love".

7. "Pension" MLM

Features: In the name of "consumer pension" and investment in nursing homes, a large number of members are developed to achieve the purpose of financing and collecting wealth.

With the acceleration of China's aging, while the government encourages non-governmental forces to participate in the cause of old-age care, there are also some models in the market that are under the guise of "old-age care", but in fact they circle money or even cheat money.

MLM and disguised pyramid selling not only seriously disrupt the normal social and economic order, seriously endanger social stability, but also cause great damage to the business integrity system and social moral system.

(1) disturbs the order of market economy and infringes on many legal objects. The illegal activities of pyramid selling and disguised pyramid selling are often accompanied by a large number of illegal acts, such as tax evasion, counterfeiting, smuggling, illegal fund-raising and illegal trading of foreign exchange. It not only violates the provisions of the state prohibiting pyramid selling and disguised pyramid selling, but also violates many legal provisions such as taxation, consumer rights protection, market order management, finance, foreign exchange management and so on.

(2) Damage to participants and their families. MLM and disguised pyramid schemes not only cause economic losses to participants, but also cause great harm to their families.

(3) Initiating a criminal offence, which brings harm to social stability. MLM caused most participants to lose blood. Some people live in different places, lead miserable lives and even commit suicide by jumping off a building. Some people participate in theft, robbery, fighting, rape, prostitution, gathering people to make trouble and other illegal acts, which have seriously infringed on the safety of people's lives and property and social stability.

(4) It has caused great damage to social morality and credit system. Because the development targets of MLM personnel are mostly relatives, friends, classmates, fellow villagers and comrades-in-arms, their unscrupulous fraud means lead to a serious decline in the trust between people, which in turn leads to the opposition between relatives and friends, the opposition between father and son, and even the destruction of the family.

First of all, we should be vigilant when we talk about the return as hype. High returns are bound to have high risks.

Secondly, no matter how the form of MLM changes and develops, its essence is still to pay the entry fee by purchasing shares, develop offline personnel and form a hierarchy, and take the "performance" of offline personnel as the profit basis.

Therefore, to identify pyramid schemes, we need to look at three characteristics:

1, registration fee

Whether it is necessary to subscribe for goods or pay fees to obtain franchise qualifications or develop others' franchise qualifications to seek illegal interests;

Step 2 pull people's heads

Whether it is necessary to develop others to become their own downline, and pay remuneration to the developed personnel based on the number of people directly or indirectly developed, so as to seek illegal interests;

3. Method of payment

Whether to directly or indirectly develop personnel to calculate remuneration and seek illegal interests.

If it meets the above characteristics, it may be suspected of pyramid schemes.

Extended data

Avoid pyramid schemes

1, beware of "killing ripe" and the temptation to get rich.

Be careful when relatives and friends introduce investment and job opportunities in different places, or when friends who haven't contacted for a long time suddenly ask to travel and introduce people. Multi-party verification and inquiry can be conducted through 1 14 and industrial and commercial registration.

2. Check the company information carefully.

Not all the companies on the official recruitment website are formal. Be sure to check carefully, including the company's detailed address, telephone number, industry evaluation, and cases done.

MLM organizations are not excluded from using other company information. Better ask a friend where the company is. Stay alert.

3. Ask more questions in the telephone interview.

In the telephone interview, you can ask several professional questions and the specific situation of the project in depth. If the other person hesitates or evades the question, you must be vigilant.

4. Be careful when changing the address temporarily.

After arriving at the designated place, the other party calls to change the meeting address. Be careful! You can ask the people in the annex if this company is operating.

If the other party says to send a car to pick you up, don't get on the bus casually. It is probably in collusion with the MLM organization.

5. Don't go to remote meeting places.

If you find the meeting address far away. Don't go. The interview location and address must be sent to family and friends.

Under normal circumstances, regular companies will sign contracts before work, so be careful when going directly to the construction site or project site.

6. Care about your family situation should be exaggerated.

MLM organizations usually ask if their families are nearby and if they have any friends in this city. You can deliberately exaggerate your personal connections and say that there are many friends in this city, and there are acquaintances in hospitals and police stations. The MLM organization has scruples, and you have a chance to escape.