Who knows Zhongwei Shi Sheng Group? Are they direct selling products or pyramid schemes?

Whether Zhongwei Group is a direct seller or a pyramid scheme should be judged according to its specific operation mode.

Direct selling is a product distribution model, while pyramid selling is a head-pulling model. The essential difference is whether to make profits by selling goods or by developing offline profits.

Direct selling is a kind of distribution mode, which is divided into single-level direct selling and multi-level direct selling. Single-level direct selling refers to an enterprise recruiting salesmen and selling products directly to users. Multi-level direct selling is to form a sales team to sell products to users. Direct selling has four characteristics: a clear target customer base; No intermediate links, as few as possible intermediate links; The products actually sold have measurable sales effect; The remuneration of salespeople is determined according to the performance of the products sold.

MLM is to attract people, and there are three forms, namely, the organizer or operator requires the developed personnel to develop other personnel to join, and calculates and pays the remuneration (including material rewards and other economic benefits) for the developed personnel according to the number of directly or indirectly developed personnel; Organizers or business operators, through the development of personnel, require the developed personnel to pay fees or pay fees in disguised form by subscribing for goods. , and obtain the qualification to join or develop other personnel to join; Organizers or operators, through the development of personnel, require the developed personnel to develop other personnel to join, forming an online and offline relationship, and calculating and paying online rewards according to the offline sales performance.

the State Council

Prohibition of MLM regulations

Article 7 The following acts belong to pyramid selling:

(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) The organizer or business operator, through the development personnel, requires the developed personnel to pay the fees or pay the fees in disguised form by subscribing for commodities, etc. , 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.

the State Council

regulation on administration of direct sales

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

The term "direct selling enterprise" as mentioned in these Regulations refers to an enterprise that sells products by direct selling with approval in accordance with the provisions of these Regulations.

The term "direct seller" as mentioned in these Regulations refers to the person who sells products directly to consumers outside the fixed business premises.