Is Linyi Xinbang Biotechnology Co., Ltd. direct selling or pyramid selling?

Whether it is direct selling or pyramid selling, it is decided according to the 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.

In China, direct selling needs to be approved by the Ministry of Commerce and registered with the administrative department for industry and commerce. The list of legitimate enterprises /front/getEnterprises can be found in the direct sales management system of the Ministry of Commerce.